ValiRx raises £1.16m in placing

Clinical stage biotechnology company ValiRx announced a placing to raise £1.16m on Wednesday.

The AIM-traded firm said it has raised £1.16m of gross proceeds through the issue of 46,509,015 new ordinary shares at a price of 2.5p per share.

It said the net proceeds of the placing would be used predominantly for the clinical development of VAL401, the dose expansion of the VAL201 trial in a multi-centre study;, supporting the opening of additional trial centres to aid recruitment and completion of the clinical trials for VAL401 and VAL201, and for general working capital purposes and business development.

“Application has been made to the London Stock Exchange for the 46,509,015 placing shares to be admitted to trading on AIM,” ValiRx’s board confirmed in a statement.

“Admission of the 46,509,015 placing shares is expected to occur on or around 15 March 2017.”

Following the issue of the placing shares, the company's share capital will comprise of 132,156,204 ordinary shares.

The company said it has also entered into a warrant instrument pursuant to which, subject to and conditional on admission of the placing shares, and the passing of the requisite shareholder resolutions, it will grant the placees warrants to subscribe for 46,509,015 ordinary shares in the capital of the company at an exercise price of 5p per share.

“The warrants may be exercised at any time in the period expiring on the second anniversary of the date of admission of the placing shares,” the board said.