Pharma company Shield Therapeutics has announced it expects to raise more than $7.7m from a subscription and separate fundraise involving existing investors.
The Gateshead company – makers of a product which treats iron deficiency anaemia – last month revealed plans to raise up to $10m through a subscription by its largest investor, AOP Health International Management AG. It formed part of a broader funding move, which sees the firm launch a conditional offer for its existing retail shareholders to purchase new ordinary shares, aiming to raise up to £1m.
Shield’s product was first launched in Europe under the Ferracru brand in 2019 but is now available in the US and other countries as Accrufer, and two months ago its said additional capital and savings were needed if it is to reach its goal of becoming cash flow positive by the end of next year. The company has now told shareholder that the retail book offer has raised gross proceeds of £96,715.83 before expenses, through the issue of 3,223,861 shares at 3p each.
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In total, the retail book offer and the subscription are expected to raise gross cash proceeds of approximately £7,789,023.51. Completion of the two fundraises remain subject to the passing of all resolutions at the company’s general meeting being held on Christmas Eve.
A waiver of obligations under the Takeover Code will be considered at the meeting, because its large increase in shares would take it past the threshold to trigger a formal company takeover. AOP, however, has said that is not part of its plans.