Scancell Holdings PLC (LON:SCLP), the cancer immunotherapy specialist, has raised £3.88mln via a placing with a single new investor to help fund the progression of its lead cancer asset into clinical trials.
After buying 77.56mln new shares at a price of 5p per share, which was a slight discount to the 5.35p closing price the previous day, the Vulpes Life Sciences Fund will have a 16.67% stake in the company when the shares are issued next Monday.
Along with the stake in the company, Martin Diggle, co-founder of the fund’s owner, Vulpes Investment Management, and an experienced investor in the life science sector, has been proposed as a non-executive director.
Diggle, having conducted scientific and commercial due diligence on Scancell for some time, said Vulpes felt it was an “exciting time” in the evolution of the company, where he believed its “unique and innovative approach to fighting cancer is compelling and under-appreciated”.
“At Vulpes we are always searching for overlooked companies that have the ability to make significant advances in medical science, with a view to supporting their development over the long term. We believe Scancell fulfil these criteria perfectly.”
Scancell chairman John Chiplin said: “This new investment capital increases funds available to advance our product pipeline and in particular, the transition of our lead Moditope platform asset Modi-1 into the clinic.
Modi-1, part of a new class of selective immunotherapy agents that stimulate the production of killer T cells that overcome the immune suppression induced by tumours, is expected to enter the clinic in the first quarter of 2020 in multiple tumour types, including head and neck, breast and ovarian cancer.
Scancell shares were up almost 8% to 5.76p in early trading on Thursday.