Manchester-based drug discovery company C4X Discovery Holdings announced on Thursday morning a placing of shares with institutional investors to raise up to £5.7 million.

C4X said the share placing was supported by existing shareholder Polar Capital Biotechnology Fund which indicated a minimum investment of £3 million.

A few hours later, C4X said the placing was oversubscribed, with about 22.78 million share successfully placed by Panmure Gordon with institutional investors at 25p to raise a total of £5.7 million for the company.

The placing shares represent 9.9% of the existing ordinary share capital of the company prior to the placing.  

Following completion of the placing, Polar will own about 16.7% of the enlarged share capital of C4X.

“The net proceeds from the placing will be used to strengthen the company’s balance sheet as partnering discussions progress and provide working capital to continue to develop the company’s portfolio of early-stage, high-value small molecule programmes,” said C4X.

“The net proceeds of the placing are expected to provide the company with at least twelve months working capital.”

C4X Discovery CEO Clive Dix said: “We thank our shareholders for their continued support.

“This funding round, led by long-term investor, Polar Capital, further strengthens C4XD’s balance sheet and is an endorsement of the great work we are doing across our pipeline of early-stage, high value small molecules intended for out-licensing to the pharmaceutical industry.”