Shares of Manchester-based drug discovery company C4X Discovery Holdings plc (C4XD) fell about 58% on Thursday as it announced it raised £7 million from a share placing at a 63% discount.
“A total of 46,666,667 placing shares and subscription shares have been placed by Panmure Gordon (UK) Limited at the issue price of 15 pence per new ordinary share to raise a total of approximately £7.0 million for the company (before expenses) …” said C4X.
“The placing shares and subscription shares being issued represent approximately 80.7 per cent. of the issued ordinary share capital of the company prior to the placing and subscription.
“The issue price represents a discount of 63 per cent. to the company’s mid-market closing price as at 23 October 2019, being the last practicable day before the announcement of the placing.
“The net proceeds of the placing and subscription of approximately £6.6 million receivable by the company, will be used to strengthen its balance sheet as near term and other licensing discussions and strategic collaborations progress, and support working capital during the expansion of its pipeline portfolio …”
C4X Discovery CEO Clive Dix said: “In these unprecedented times for investment in our industry, leading to extremely turbulent market conditions, we are delighted to have raised £7.0 million to support the execution of our strategy which is reflective of confidence in the future value of our business.
“We want to thank both our existing shareholders for their continued support, belief and confidence in our business and to welcome our new shareholders for which this fundraising offers an opportunity to build shareholder value.
“C4XD aims to address industry’s biggest challenges by identifying promising disease targets and solving chemistry challenges to generate attractive pre-clinical programmes.
“Our goal is to maximise the capital raised so that we can deliver on our strategy.
“The monies raised put us in a strong position to drive the expansion of our pipeline and to advance the next wave of deal opportunities in the C4XD portfolio as momentum continues to build across our key out-licensing projects.”