27th Dec 2013 08:27
LONDON (Alliance News) - Cancer therapeutics company ValiRx PLC Friday said it has raised GBP2.9 million before expenses in a placing that involves an equity swap, and will use the funds for future oncology development work and for general working capital purposes.
Under the deal, YA Global Master SPV Ltd has subscribed for 800 million of the 892.3 million being placed. Other investors introduced by the company's broker Daniel Stewart & Co PLC have subscribed for the remaining shares.
Just over 753.8 million of the shares subscribed for by YA Global Master fall under an equity swap deal. ValiRx will make a GBP1.5 million payment to YA Global in return for 18 monthly settlement payments of GBP83,333.33 adjusted for share price movements against the placing price of 0.325 pence a share.
YA Global Master will have a 27.48% stake in the company once the placing has taken place.
ValiRx shares were down 5.8% at 0.311 pence early Friday.
By Steve McGrath; [email protected]; @stevemcgrath1
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