Business
Equity Prepayment Facility of up to £5 million
Equity Prepayment Facility of up to £5 million.
About this update from Sareum Holdings Plc
[{"type":"text","content":"\n\nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO THE UNITED STATES, AUSTRALIA, NEW ZEALAND, CANADA, JAPAN OR THE REPUBLIC OF SOUTH AFRICA OR IN ANY OTHER JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 (\"MAR\"), AND IS DISCLOSED IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF MAR.\n \n Sareum Holdings PLC\n(\"Sareum\" or the \"Company\")\nEquity Prepayment Facility of up to £5 million\nCambridge, UK, 3rd August 2023 - Sareum Holdings plc (AIM: SAR), a clinical-stage biotechnology company developing next generation kinase inhibitors for autoimmune diseases and cancer, is pleased to announce that it has agreed terms on an Equity Prepayment Facility of up to £5 million (the \"Facility\") with RiverFort Global Opportunities PCC Ltd (the \"Investors\" or \"RiverFort\") as arranged by RiverFort Global Capital Ltd, with an initial deposit of £2 million (the \"First Deposit\"), expected to be received by the Company on 4th August 2023 (the \"Execution Date\"), net of associated costs. \n \nThe Company intends to use the Facility, if fully drawn, together with the receipt of anticipated tax credits to the amount of £1.6 million, to complete the Phase 1a/b clinical development of the Company's lead candidate SDC-1801, which is expected to be a primary catalyst for driving shareholder value, and for general working capital to Q4 2024.\n \nSDC-1801 is a dual TYK2/JAK1 kinase inhibitor being developed as a potential new therapeutic for a range of autoimmune diseases with an initial focus on psoriasis, an autoimmune condition affecting the skin.\n \nDr Tim Mitchell, CEO of Sareum, commented:\n\"Our lead candidate SDC-1801 is progressing well in its development. This agreement with RiverFort provides important support for the trial and general working capital.\n \n\"This funding, if fully drawn, alongside anticipated tax credits, allows us to complete plans for the Phase 1b portion of the trial once the Phase 1a part is concluded, and provides cash runway into Q4 2024.\n \n\"We're delighted to have this comm...