Redx Pharma unveils plans to raise £30m via placing

Alderley Park-based clinical-stage biotechnology company Redx Pharma is looking to raise £30m through a placing.

The listed business is proposing to raise the funding, before expenses, by way of a placing to institutional investors of new ordinary shares of one pence each in the capital of the company, at a price of 59 pence per placing share. 

The net proceeds of the placing will allow the company to continue to progress its pipeline

The placing shares are being offered by way of an accelerated bookbuild process which will be launched immediately.

WG Partners LLP is acting as Global Coordinator and WG Partners LLP, Panmure Gordon (UK) Ltd and Stifel Nicolaus Europe Ltd are acting as joint bookrunners in connection with the placing.

A number of the company's existing investors have indicated strong support for, and that they intend to participate in, the placing, according to a statement on the London Stock Exchange.

The company is proposing to use the placing in order to fund the anticipated progression of its clinical development and research stage programmes to important value inflection points through 2023. It said this would thereby continue the implementation of its stated strategy to drive shareholder value.  

The statement added: "As the company executes its business plan, the board and management will continue to ensure that resources are allocated to allow progression of the project portfolio in the most efficient way and to assess options on an on-going basis to ensure that Redx extracts maximum value from its intellectual property. 

"Following completion of the placing, the company estimates that it will have available cash of approximately £55.9m."

The company's focus is on discovering and developing novel, small molecule, highly targeted therapeutics for the treatment of cancer and fibrotic disease.