Business
£3m Equity Purchase Agreemen
£3m Equity Purchase Agreemen.
About this update from Valirx Plc
[{"type":"text","content":"\n RNS Number : 9732D ValiRx PLC 11 December 2009 \n \nValiRx PLC (AIM: VAL)\n(\"ValiRx\" or the \"Company\")\n\n£3m Equity Purchase Agreement\n\nCompany secures access to additional capital as it continues to develop its \n intellectual property into revenue\n\nValiRx, the AIM quoted developer of diagnostics and therapeutics for cancer, is pleased to announce that it has entered into a £3m Equity Line of Credit (\"ELOC Facility\") with US based Dutchess Opportunity Fund, II, LP, a Delaware limited partnership (\"the Investor\"). The ELOC Facility allows ValiRx, at its own discretion, to raise up to £3 million of equity capital in drawdown's over a two year period. \n\nPursuant to each cash drawdown, new ordinary shares in the Company will be issued to the Investor at a discount of approximately 10 per cent. to the market price prior to drawdown. The maximum size of a drawdown is £100,000 or, if lower, an amount equal to 150% per cent of the value of the average daily volume in ValiRx shares multiplied by the volume weighted average price of the transactions in the 5 days immediately preceding the drawdown. Since the use of the ELOC Facility is entirely at ValiRx's discretion, the Company can control the timing, size and pricing levels for any drawdown and is not obliged to use the ELOC Facility. This provides the Company with the ability to access funding at short notice, as allowed under the terms of the ELOC Facility, which is required to progress the growth and development of the business.\n\nAs announced previously in the trading update on 25 November 2009, the Company has made progress on several fronts. This funding will allow the Company to follow opportunities in a controlled and timely manner with the aim of increasing the Company's IP and asset value.\n\nThe ValiMedix division has started trading and producing revenues and, following encouraging initial responses the company anticipates enhancing the product range to accelerate revenue growth. \n\nValiRx Finland has recently agreed to terms to receive grants amounting to €76k to accelerate its personalised medicine diagnostic product development and launch...