Business
Placing to raise £718,500
Placing to raise £718,500.
About this update from Sareum Holdings Plc
[{"type":"text","content":"\n \n \n RNS Number : 7284O\n Sareum Holdings PLC\n 02 June 2020\n \n \n \n \n \n \n \n (AIM: SAR)\n \n \n \n \n 2 June 2020\n \n \n \n \n \n The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014\n Sareum Holdings plc\n (\"Sareum\" or \"the Company\")\n Placing to raise £718,500 to progress proprietary TYK2/JAK1 programmes\nin preclinical development\n Sareum Holdings plc (AIM: SAR), the specialist drug development company delivering targeted small molecule therapeutics to improve the treatment of cancer and autoimmune diseases, announces that it has raised £718,500, before expenses, through a placement by Hybridan LLP of 119,750,000 new ordinary shares of 0.025p each in the capital of the Company (\"Ordinary Shares\") (the \"Placing Shares\") at 0.6p per share (the \"Placing\").\n The net proceeds from the Placing, together with approximately £980k of existing cash (as at 31 March 2020) and an estimated R&D tax credit of £150k expected to be received in January 2021, will be used to progress the Company's TYK2/JAK1 drug development programmes as well as for working capital purposes. The Company is targeting the completion of at least one of its TYK2/JAK1 inhibitor preclinical studies in Q4 2020, subject to successful progress. Clinical trial plans, including priority indications for both compounds, will also be developed in parallel.\n The net proceeds from the Placing, together with any grants awarded to Sareum, will also help the Company explore the potential benefit of our TYK2/JAK1 inhibitors against Covid-19.\n In the next 12 months, the Company estimates an R&D investment of approximately £800k and non-R&D salaries and overheads of approximately £570k, based on 33% of Director's salaries continuing to be deferred as announced in December 2019. Additionally, as announced on 26 March 2020, the Company has the potential to receive a success-based milestone payment of approximately £900k by the end of 2020 from the licensee of Sareum's FLT3+Aurora kinase inhibitor programme.\n Application will be made for the Placing Shares, which will rank pari passu with the Company's existing Ordinary Shares, to be admitted to trading on the AIM market of the London Stock Exchange (\"AIM\") (\"Admission\"). It ...