12.02.2013 - AIM-listed cancer drug discovery specialist e-Therapeutics plc is set to
raise £40m to push its drug development.
The Oxford-based drug discovery and development company said it will issue new ordinary shares to institutional investors. The shares will be priced at 32p, a premium of 4%, to the closing mid-market price on share value of 8th February. The move was backed by the company’s shareholders in advance of its general meeting.
With the proposed issue, e-Therapeutics wants to fill its pockets – pro-forma net cash and liquid resources will total approximately £48m after the capital increase. The company announced this will be enough money to support all of the company’s current R&D activities until 2017 by which the company expects to licence its lead compound, ETS2101.
Up to then £25m will be required to push the synthetic cannabinoid dexanabinol (ETS2101) from the current Phase I dose-escalation studies to proof-of concept in glioma and four to six additional solid cancer indications. Other investments will be made into new drug discovery efforts using the company’s network pharmacology platform. The funds to be raised through the new issue will include a substantial fund by existing investor Invesco Asset Management Limited, whose shareholding will increase from 45.92% to 49.90% after completion.