4D Pharma plc is pleased to announce that, further to the announcement released on 18/02/2020, the Company has successfully raised gross proceeds of £22 million through a Placing of 16,820,080 New Ordinary Shares and Subscription of 27,179,920 New Ordinary Shares with certain existing and new investors at an Issue Price of 50 pence per share.
As a part of the Fundraising, the Company has exercised its right to cause MSD (the tradename of Merck & Co., Inc, Kenilworth, NJ USA) to purchase US$5 million (approx. £3.83 million) of New Ordinary Shares at the Issue Price pursuant to the terms of a Subscription Agreement.
Furthermore, certain Directors, being David Norwood, Duncan Peyton and Alex Stevenson, have agreed to subscribe for a combined £2 million of Subscription Shares at the Issue Price.
The Issue Price represents a 27.8 per cent. discount to the Closing Price of 69.25 pence on 17 February 2020, the Business Day before the announcement of the Fundraising. The Fundraising Shares will represent approximately 40.2 per cent. of the Company’s issued share capital following completion of the Fundraising.
The net proceeds of the Fundraising, together with the Company’s existing resources, are expected to support its ongoing clinical studies in IBS and oncology and to enable the Company to continue to fund its operations to at least two clinical study readouts, as well as for general corporate purposes.
Duncan Peyton, CEO of 4D Pharma plc, commented:
“4D Pharma is pleased to complete this funding round, bringing capital from both the UK and US to give further validation of our approach and widen our shareholder base as we move toward the next phase of the Company’s development.”
N+1 Singer acted as Nominated Adviser, Joint Bookrunner and Joint Broker alongside Bryan Garnier & Co. Limited.
About 4D Pharma plc
Founded in February 2014, 4D Pharma is a world leader in the development of Live Biotherapeutics, a novel and emerging class of drugs, defined by the FDA as biological products that contain a live organism, such as a bacterium, that is applicable to the prevention, treatment or cure of a disease. 4D Pharma has developed a proprietary platform, MicroRx®, that rationally identifies Live Biotherapeutics based on a deep understanding of function and mechanism. 4D Pharma’s Live Biotherapeutic Products are orally delivered single strains of bacteria that are naturally found in the healthy human gut.
Market Cap: £40 million*
Website: Click here
*As at 19/02/2020
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