Business
Subscription, Convertible Funds and Warrant Issue
Subscription, Convertible Funds and Warrant Issue.
About this update from Valirx Plc
[{"type":"text","content":"\n \nRNS Number : 1676X ValiRx PLC 26 April 2019 \n\nVALIRX PLC\n(\"ValiRx\", the \"Company\" or the \"Group\")\n \nSubscription Agreement, Convertible Facility and Issue of Warrants\n \nLondon, UK, 26 April 2019: ValiRx Plc (AIM: VAL), the clinical stage biotechnology company, announces that it has entered into a subscription agreement (the \"Agreement\") with European High Growth Opportunities SF (the \"Investor\") (the \"Subscription\"). It is acknowledged by the Company and the Investor that the Subscription is part of a wider financing arrangement to be provided by the Investor to the Company. As such, the terms of the Agreement stipulate that the Investor will also provide the Company with access to further funding by means of convertible funds with attached warrants (the \"Convertible Funds\"). Further details of both the Subscription and the Convertible Funds can be found below.\n \nThe funds from the subscription and initial monies from the convertible facility, will be used to conclude the current VAL201 trial and for general working capital purposes. The funds will also be used in the further development of VAL301, the completion of its pre-clinical studies and in the progression of the compound towards a Clinical Trial Application (CTA). Furthermore, should technology acquisition opportunities arise, ValiRx will apply funds to the strengthening of its pipeline.\n \nDr Satu Vainikka, CEO of ValiRx, commented:\n\"This investment into the Company at a premium to the recent share price is an exciting endorsement of our work to develop ground-breaking anti-cancer drugs and it will enable us to conclude the current trial of VAL201 and will provide us with a funding pathway to add real value to our VAL301 pre-clinical asset.\"\n \n\"'While a portion of the funding made available as part of this agreement, will be used to both conclude the VAL201 clinical trial and progress VAL301 into the clinic, having access to additional funds will provide ValiRx with the flexibility to invest in further research and development and a strengthened position when negotiating licensing and joint venturing deals with potential partners\".\"\n \nSubscription\nThe Agreement stipulates that the Subscription is split into three equal tranches of 71,000,000 shares (the \"Subscription Shares\"), at a subsc...