C4X Discovery Holdings has raised £5.0 million before expenses through a conditional placing of 4,901,961 new ordinary shares at 102p apiece, a discount of approximately 4.2% to the closing mid-market price on 5 September.
The proceeds will be used to:
- Progress the Group's existing pre-clinical pipeline towards clinical development and a commercially attractive partnering point
- Invest in developing new lead compounds against highly valuable drug targets including those identified by Taxonomy3
- Provide sufficient working capital to fund the Group's operations
Calculus Capital Limited, a leading EIS and VCT investor, with a strong track record in the healthcare sector, has agreed to invest £3.0 million as cornerstone investor in the Placing subscribing for 2,941,176 Placing Shares, and on admission will be interested in 7.9 per cent. of the enlarged Share Capital.
Polar Capital LLP, another new investor, and a number of existing shareholders have also agreed to support the fundraising.
Chief executive Clive Dix - who has agreed to invest £475,000 in the placing - said: "The completion of this fundraise will allow C4XD to continue on its path to becoming the world's most productive drug discovery engine. We are already exploiting cutting edge-technologies to design and create best-in-class small molecule candidates.
"The additional funds will allow us to progress our existing innovative pipeline towards the clinic and draw on the strengths of our discovery engine to start the development of four new medicines for diseases with a high unmet medical need.
"I am delighted to welcome Calculus and Polar Capital as new shareholders and would like to thank our existing investors that also took part in the Placing. We are extremely excited about the future at C4X Discovery."