ImmuPharma PLC, a specialist drug discovery and development company, has announced subscriptions to raise £1.35 million through the issue of 67,500,000 new ordinary shares at a price of 2 pence per share. This includes a subscription subject to a sharing agreement of £1.0 million and direct subscriptions of £0.35 million. The company has also entered into a sharing agreement with finance provider Lanstead Capital Investors in relation to £1.0 million of the amount subscribed by them. The subscription and direct subscription have been arranged by Stanford Capital Partners Limited.
The proceeds of the subscriptions will be used primarily to fund investment into the company's R&D pipeline, general working capital, and cash expenses associated with the subscriptions. The company's chairman and CEO, Tim McCarthy, stated that the funding provides a clear cash runway to at least the end of 2024 and that the company is entering an important period with the expectation of achieving key milestones.
The company has undergone a significant corporate reorganization, resulting in a more streamlined structure and a lower level of fixed overheads. The product development portfolio has been refocused into auto-immunity and anti-infectives, with positive developments across all the portfolio. McCarthy believes that the progressive news flow should reflect positively in the company's share price, benefiting the Lanstead funding arrangement and the wider shareholder base.