Business
Placing, Subscription Agreement & Issue of Warrant
Placing, Subscription Agreement & Issue of Warrant.
About this update from Valirx Plc
[{"type":"text","content":"\n \nRNS Number : 0274C ValiRx PLC 13 June 2019 \n\nVALIRX PLC\n(\"ValiRx\", the \"Company\" or the \"Group\")\n \nPlacing, Update on Subscription Agreement & Issue of Warrant\n \nLondon, UK, 13 June 2019: ValiRx Plc (AIM: VAL), the clinical stage biotechnology company announces a placing, warrant issue and provides an update on the Subscription Agreement.\n \nIssue of Equity\n \nThe Company has raised £300,000 of gross proceeds through the issue of 150,000,000 new ordinary shares at a price of 0.2 pence per ordinary share (\"Placing Shares\"). The Placing Shares will, when issued, rank pari passu in all respects with the existing ordinary shares of the Company. Application has been made to the London Stock Exchange for the 150,000,000 new ordinary shares to be admitted to trading on AIM (\"Admission\"). Admission of the shares is expected to occur on or around 18 June 2019. The net proceeds of the Placing will be used principally for the Company's immediate general working capital needs and to progress the Phase I/II clinical trial of VAL201 to treat prostate cancer and associated metastatic conditions to the conclusion of this stage of the trial and initial data readout and to continue the development of ValiRx's pre-clinical VAL301 and VAL101/GeneICE programmes towards the clinic.\n \nFollowing the Placing, the Company will continue to manage its working capital position. As previously notified it expects to shortly receive proceeds of approximately £150,000 from the sale of an unlisted security and it also expects to receive a R&D tax credit of £400,000 from HMRC in July 2019.\n \nIssue of Warrant\nThe funds were raised through the Company's broker, Novum Securities Limited (\"Novum\"). As part of their fee arrangement, the Company has agreed to issue Novum with a warrant over 7,500,000 ordinary shares in the Company, which can be exercised at a price of 0.2 pence per share until the third anniversary of the issue of the warrant, subject to the Company being granted sufficient headroom to issue ordinary shares at the forthcoming Annual General Meeting.\n \nUpdate on Subscription Agreement \nAs announced by the Company on 10 June 2019, the Company is in advanced discussions with the European High Growth Opportunities SF (the \"Investor\") to agree the ter...