TIDMVAL
RNS Number : 7587Y
ValiRx PLC
06 January 2020
ValiRx Plc
("ValiRx" or the "Company")
Placing, Issue of Warrant & Appointment of Broker
London, UK, 6 January 2020: ValiRx Plc (AIM: VAL), a clinical
stage biotechnology company, announces that it has raised
GBP200,000 of gross proceeds through the issue of 200,000,000 new
ordinary shares at a price of 0.10 pence ("Issue price") per share
("Placing") with new and existing investors and the appointment of
ETX Capital Limited ("ETX Capital") as joint broker to the Company
with immediate effect.
Use of Proceeds
The net proceeds of the Placing will be used to analyse the
Phase I/II clinical trial of VAL201 to treat prostate cancer and
associated metastatic conditions and continue the development of
ValiRx's pre-clinical VAL301 and VAL101/GeneICE programmes towards
the clinic, and for general working capital purposes.
VAL201 - As announced on 16 December 2019, the results from the
clinical trial appear, in advance of full analysis, to indicate
that the VAL201 compound has a clear impact on patients with
prostate cancer. The compound has also shown it is very safe and
has a high degree of tolerability, up to a dose that is in excess
of the predicted dose and any practical therapeutic
concentration.
VAL301 - The Company continues with the pre-clinical development
of VAL301, focused on the treatment of endometriosis. Endometriosis
represents one of the major causes of female infertility.
VAL401 - Completed its first clinical trial in Q3 2017 as an
oral treatment for late-stage non-small cell lung cancer. Data from
the completed Phase II clinical trial showed that palliative stage
patients could expect to see improvements in symptoms, with the
added benefit of improved survival prospects. ValiSeek is currently
in discussions with potential partners for starting the next phase
of clinical trial.
Appointment of Joint Broker
The Company is pleased to announce the appointment of ETX
Capital Limited as the Company's joint broker, with immediate
effect.
Issue of Warrant
Each Placing share will carry a warrant to subscribe for one
further share at a price of 0.10p per share, exercisable at any
time from Admission (as defined below) up to the third year
anniversary of Admission. The funds were raised through ETX
Capital. As part of their fee arrangement, the Company has agreed
to issue to ETX Capital with a warrant over 20,000,000 ordinary
shares in the Company, exercisable at any time from Admission (as
defined below) at a price of 0.10 pence per share up to the third
year anniversary of Admission.
Following the grant, in aggregate, of the 220,000,000 warrants
over ordinary shares, the Company will have 290,076,425 warrants
over ordinary shares in issue. Of the above cumulative 220,000,000
warrant granted, 140,000,000 warrants over ordinary shares will be
exercisable subject to certain shareholder approvals being obtained
at an upcoming general meeting of the Company.
Issue of Equity
The 200,000,000 new ordinary 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 200,000,000 new ordinary shares to be admitted to trading on
AIM ("Admission"). Admission of the 200,000,000 new ordinary shares
is expected to occur on or around 10 January 2020.
Following Admission, the Company's enlarged issued share capital
will comprise 1,534,827,184 ordinary shares of 0.1p each with
voting rights. The Company does not hold any shares in treasury.
This figure of 1,534,827,184 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.
Dr Satu Vanikka, CEO of ValiRx Plc, commented:
"With prostate cancer reported this month in an academic study
as being the most common cancer in men in the UK* and with an
estimated 1.3 million new cases of prostate cancer occurring
worldwide last year**, it is truly exciting to see VAL201
approaching the conclusion of its Phase I/II first-in-man
study."
"I look forward to regulatory approval of the trial data being
speedily reached and the opportunity of potentially demonstrating
that VAL201 can address this widespread and often fatal disease in
men. We will keep shareholders updated on progress."
Sources:
*https://www.bristol.ac.uk/news/2019/december/prostate-cancer.html
** Global cancer statistics 2018: GLOBOCAN estimates of
incidence and mortality worldwide for 36 cancers in 185 countries
by Bray F, Ferlay J, Soerjomataram I, Siegel RL, Torre LA, Jemal A
in CA: A Cancer Journal for Clinicians
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 / Ludovico
Lazzaretti
Allenby Capital Limited (Joint Broker) Tel: +44 (0) 20 3328 5656
Jeremy Porter / Alex Brearley (Corporate
Finance)
Kelly Gardiner (Equity Sales)
ETX Capital Limited (Joint Broker) Tel: +44 (0) 20 7392 1568
Thomas Smith
Novum Securities Limited (Joint Broker) 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.
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END
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