TIDMVAL
RNS Number : 0274C
ValiRx PLC
13 June 2019
VALIRX PLC
("ValiRx", the "Company" or the "Group")
Placing, Update on Subscription Agreement & Issue of
Warrant
London, UK, 13 June 2019: ValiRx Plc (AIM: VAL), the clinical
stage biotechnology company announces a placing, warrant issue and
provides an update on the Subscription Agreement.
Issue of Equity
The Company has raised GBP300,000 of gross proceeds through the
issue of 150,000,000 new ordinary shares at a price of 0.2 pence
per ordinary share ("Placing Shares"). The Placing Shares will,
when issued, rank pari passu in all respects with the existing
ordinary shares of the Company. Application has been made to the
London Stock Exchange for the 150,000,000 new ordinary shares to be
admitted to trading on AIM ("Admission"). Admission of the shares
is expected to occur on or around 18 June 2019. The net proceeds of
the Placing will be used principally for the Company's immediate
general working capital needs and to progress the Phase I/II
clinical trial of VAL201 to treat prostate cancer and associated
metastatic conditions to the conclusion of this stage of the trial
and initial data readout and to continue the development of
ValiRx's pre-clinical VAL301 and VAL101/GeneICE programmes towards
the clinic.
Following the Placing, the Company will continue to manage its
working capital position. As previously notified it expects to
shortly receive proceeds of approximately GBP150,000 from the sale
of an unlisted security and it also expects to receive a R&D
tax credit of GBP400,000 from HMRC in July 2019.
Issue of Warrant
The funds were raised through the Company's broker, Novum
Securities Limited ("Novum"). As part of their fee arrangement, the
Company has agreed to issue Novum with a warrant over 7,500,000
ordinary shares in the Company, which can be exercised at a price
of 0.2 pence per share until the third anniversary of the issue of
the warrant, subject to the Company being granted sufficient
headroom to issue ordinary shares at the forthcoming Annual General
Meeting.
Update on Subscription Agreement
As announced by the Company on 10 June 2019, the Company is in
advanced discussions with the European High Growth Opportunities SF
(the "Investor") to agree the termination of the entire
Subscription Agreement. The Company and the Investor have not yet
come to a definitive agreement in relation to this matter. The
Company expects that a payment will be made to the Investor of not
in excess of GBP150,000 in order terminate the agreement. A further
announcement will be made in due course.
Total Voting Rights
Following Admission, the Company's enlarged issued share capital
will comprise 902,629,382 ordinary shares of 0.1p each with voting
rights. The Company does not hold any shares in treasury. This
figure of 902,629,382 may be used by shareholders in the Company as
the denominator for the calculations by which they will determine
if they are required to notify their interest in, or a change in
their interest in, the share capital of the Company under the FCA's
Disclosure and Transparency Rules.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
*** ENDS ***
For more information, please contact:
ValiRx plc Tel: +44 (0) 20 3008 4416
www.valirx.com
Dr Satu Vainikka, Chief Executive Tel: +44 (0) 20 3008 4416
Tarquin Edwards, Head of Communications. Tel: +44 (0) 7879 458
364
tarquin.edwards@valirx.com
Cairn Financial Advisers LLP (Nominated Tel: +44 (0) 20 7213 0880
Adviser)
Liam Murray/Jo Turner/Richard Nash/Ludovico
Lazzaretti
Novum Securities Limited Tel: +44 (0) 20 7399 9400
Colin Rowbury
Notes for Editors
About ValiRx
ValiRx is a biotechnology oncology focused company specialising
in developing novel treatments for cancer and associated
biomarkers. It aims to make a significant contribution in
"precision" medicine and science, namely to engineer a breakthrough
into human health and well-being, through the early detection of
cancer and its therapeutic intervention.
The Company's business model focuses on out-licensing
therapeutic candidates early in the development process. By aiming
for early-stage value creation, the company reduces risk
considerably while increasing the potential for realising value.
The group is already in licensing discussions with major players in
the oncology field.
ValiRx's two classes of drugs in development, which each have
the potential for meeting hitherto unmet medical needs by existing
methods, have worldwide patent filings and agreed commercial
rights. They originate or derive from World class institutions,
such as Cancer Research UK and Imperial College.
Until recently, cancer treatments relied on non-specific agents,
such as chemotherapy. With the development of target-based agents,
primed to attack cancer cells only, less toxic and more effective
treatments are now possible. New drugs in this group-such as those
in ValiRx's pipeline-promise to greatly improve outcomes for cancer
patients.
The Company listed on the AIM Market of the London Stock
Exchange in October 2006 and trades under the ticker symbol:
VAL
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed
to be, forward looking statements. Forward looking statements are
identi ed by their use of terms and phrases such as "believe",
"could", "should" "envisage", "estimate", "intend", "may", "plan",
"potentially", "expect", "will" or the negative of those,
variations or comparable expressions, including references to
assumptions. These forward looking statements are not based on
historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of
operations, performance, future capital and other expenditures
(including the amount, nature and sources of funding thereof),
competitive advantages, business prospects and opportunities. Such
forward looking statements re ect the Directors' current beliefs
and assumptions and are based on information currently available to
the Directors.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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