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Redx Pharma says it has conditionally raised around £25.5mln before expenses from a placing an open offer to shareholders

The net proceeds of the transaction will allow the company to continue to progress its pipeline, the drug discovery and development group said

Redx Pharma PLC -
The transaction will be effected at a price of 56p per ordinary share, representing a discount of approximately 2.6% to Redx's closing price of 57.5p on December 1, 2020

Redx Pharma PLC (LON:REDX), the drug discovery and development company focused on cancer and fibrosis, said it has conditionally raised around £25.5mln before expenses from a placing an open offer to shareholders.

The company said it was placing 45,603,575 new ordinary shares with both new institutional investors and existing shareholders and up to a further approximately £2.2 mln by way of the open offer. WG Partners are acting as sole book-runner in connection with the placing.

The transaction will be effected at a price of 56p per ordinary share, the group added, representing a discount of approximately 2.6% to Redx's closing price of 57.5p on December 1, 2020. The net proceeds of the transaction will allow the company to continue to progress its pipeline, it said.

READ: Redx Pharma to welcome new chief medical officer in March 2021

In order to provide shareholders who do not take part in the placing with an opportunity to participate in the proposed issue of new shares, Redx is providing qualifying shareholders with the opportunity to subscribe for up to 3,904,948 open offer shares on the basis of 1 open offer share for every 50 ordinary shares held on the record date, at the issue price.

By setting the open offer ratio at this level, the group's board said it has provided sufficient basic entitlements for each qualifying shareholder to enable them to maintain their existing percentage holding of existing ordinary shares, if they wish to do so, taking into account both the issue of the placing shares (but not the issue of any open offer shares or conversion shares) and the stated intention of Redmile and Sofinnova not to take up their open offer Entitlements. In addition, shareholders subscribing for their full entitlement under the open offer may also request additional open offer shares through an excess application facility.

In a statement, Iain Ross, Redx chairman, said: "We are delighted to have conditionally raised c.£ 25.5 million, which has strengthened our financial position and means we can continue to drive forward with two promising clinical programmes and our preclinical research at pace.  We are particularly pleased with the continued strong support from our existing investors, notably Redmile and Sofinnova, as well as welcoming new investors including Polar Capital."

Commenting on recent progress and momentum in a strong 2020 for Redx, Lisa Anson, Redx chief executive officer added: "Redx has made strong progress over the last six months in particular, executing on two key collaboration agreements with world-leading pharmaceutical companies, AstraZeneca and Jazz Pharmaceuticals.  We are pleased to see support for Redx's strategy and our exciting pipeline of novel drugs, which have the potential to transform the treatment of cancer and fibrosis.  

"We remain confident in our lead oncology asset, RXC004, and look forward to announcing results from the Phase 1 study, expected in H1 2021.  Our development compound in fibrosis, RXC007, also remains on track, and we expect it to enter Phase 1 clinical development in H1 2021."

Quick facts: Redx Pharma PLC

Price: 59.875 GBX

AIM:REDX
Market: AIM
Market Cap: £163.99 m
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Redx Pharma £25.5m raise 'to drive forward our two key programmes, at pace'

Redx Pharma PLC's (LON:REDX) Lisa Anson speaks to Proactive after announcing their conditional raise of around £25.5m. Anson says this raise puts Redx in a 'much stronger financial position which allows us to drive forward our two key programmes, at pace'. She goes on to explain the next...

on 7/12/20

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