12th Oct 2020 10:28
(Alliance News) - Scancell Holdings PLC on Monday said it has secured a GBP30 million cash injection from a US-based healthcare and life sciences investor.
Funds managed by Redmile Group LLC will invest GBP12.1 million through a subscription of 93.1 million shares at 13 pence each, the AIM-listed cancer treatment firm said.
It will pocket an extra GBP17.9 million from Redmile through convertible loan notes, at a conversion price of 13p per share. The loan notes will carry 3% annual interest.
Away from Redmile, Scancell also plans to raise GBP3.0 million through an open offer of shares, again at 13p per share.
The stock was up 7.6% in London early Monday at 17.22p.
"Scancell is developing novel immunotherapies for the treatment of cancer based on its technology platforms, ImmunoBody, Moditope and AvidiMabTM, with four products in multiple cancer indications and a vaccine in development for Covid-19," the company said.
"The capital raise will provide the company with significant additional balance sheet strength and will allow the company to extend the utility of the company's ImmunoBody, Moditope and AvidiMab/TaG antibody products and platforms to accelerate and broaden its development pipeline of new potential novel therapies."
The loan notes and open offer need shareholder approval at an October 29 general meeting.
By Eric Cunha; [email protected]
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