Manchester-based drug discovery company C4X Discovery Holdings said it raised £7 million in a share placing to support the firm’s expansion plans.

AIM-listed C4X said 8,235,294 shares were placed by Panmure Gordon (UK) at 85p.

“The placing shares being issued represent approximately 22.0 per cent of the issued ordinary share capital of the company prior to the placing,” said C4X Discovery.

“The placing price represents a discount of 7.1 per cent to the company’s mid-market closing price as at 13 March 2017, being the last practicable day before the announcement of the placing.

“The net proceeds of the placing receivable by the company will be used to support the execution of its strategy of becoming the world’s most productive, self-sustaining drug discovery engine by strengthening its balance sheet as partnering discussions and strategic collaborations progress, expanding its commercial capability and supporting working capital during the expansion of its pipeline portfolio.”

C4X Discovery CEO Clive Dix said: “C4X Discovery’s combination of state-of-the-art proprietary technologies, highly experienced scientific team, and industry experience uniquely positions us to fulfil the pharmaceutical industry’s demand for high quality early-stage drug candidates.

“These additional funds will allow us to deepen our commercial capabilities and progress our growing pre-clinical asset portfolio.”