The placing was oversubscribed and comprises the issue of 3.5 million shares in Faron Pharmaceuticals Oy at EUR 4.0 per share.
The shares to be issued amount to approximately 8.1% of the issued shares and votes in the Company, immediately prior to the placing. The Company raises aggregate gross proceeds of EUR 14.0 million in two tranches of which EUR 10.9 million was attributable to the Nordic placing and EUR 3.1 million to the UK placing, respectively.
The net proceeds from the directed share issue will primarily be used to:
- Commence expansion of Clevegen into planned additional cancer targets in phase I/II Matins trial
- Expansion of Clevegen manufacturing
- Strengthen balance sheet to support Faron during the REMAP-CAP trial
About Faron Pharmaceuticals Ltd
Faron (AIM:FARN, First North: FARON) is a clinical stage biopharmaceutical company developing novel treatments for medical conditions with significant unmet needs. The Company currently has a pipeline based on the receptors involved in regulation of immune response in oncology and organ damage. Clevegen, its precision immunotherapy, is a novel anti-Clever-1 antibody with the ability to switch immune suppression to immune activation in various conditions, with potential across oncology, infectious disease and vaccine development. Currently in phase I/II clinical development as a novel macrophage checkpoint immunotherapy for patients with untreatable solid tumours, Clevegen has potential as a single-agent therapy or in combination with other standard treatments including immune checkpoint molecules. Traumakine, the Company’s pipeline candidate to prevent vascular leakage and organ failures, has completed a phase III clinical trial in Acute Respiratory Distress Syndrome (ARDS). Plans for its future development are being finalised to avoid interfering steroid use together with Traumakine. Faron is based in Turku, Finland.
Carnegie acted as sole global co-ordinator and sole bookrunner in connection with the Nordic placing.