Sareum plans to raise £227,500 through a new shares placing that the Cambridge biotech firm says will be used to accelerate its drug discovery work as well a provide working capital for the company.
Though placings were a popular fundraising technique in Sareum’s financial year ending 30 June 2011 – it raised £950k through three of them – it didn’t find the need for any in the 2012 financial year. However, we are now in the first week of the 2013 financial year and with the company still making a loss and cash in hand having dropped from £871k at this point in 2011 to £530k six months ago, it needs to cover its continued R&D spend.
The shares, which are expected to become effective on Monday next week, have been set at 0.85p, 5.6 per cent below their price at the start of trading this morning. The price has since dropped 0.02p – 2.8 per cent – to 0.88p. The placing will increase the number of Sareum shares in issue by over 1.8 per cent.