Date: 2011-12-08
Type of information: Private placement
Company: Verona Pharma (UK)
Investors:
Amount: £3.25 million (€3.8 million)
Funding type: private placement
Planned used: The net proceeds of the placing will be used: - to finance the ongoing RPL554 clinical trial programme, including a low dose response study planned to be completed by mid 2012, and a Phase II anti-inflammatory trial planned to be completed by late 2012. In the meantime, discussions related to the licensing of RPL554 continue; - to finance further clinical trials with VRP700 to obtain vital dose response and duration of action data. These studies are planned to be initiated and concluded in 2012; and - to meet ongoing corporate expenditures. The Directors believe that the placing will provide Verona Pharma with sufficient working capital to finance the development programme described above, without taking into account any potential licensing income from RPL554.
Others: Verona Pharma has successfully completed a placing, conditional on admission and in part on shareholder approval, to raise gross proceeds of approximately £3.25 million. The placing, which was arranged by WH Ireland Limited, involved the issue of up to 65,020,120 new ordinary shares at 5 pence per share. Up to 43,660,800 of these new ordinary shares have been placed firm and up to 21,359,320 of these new ordinary shares have been placed conditional upon shareholder approval. Application has been made for the new ordinary shares to be admitted to trading on AIM and dealings in the Firm Shares and the Conditional Shares are expected to commence on 14 December 2011 and 11 January 2012, respectively.
Following the placing of all of the new ordinary shares, the number of ordinary shares in issue will increase to 307,204,395.
Magic Bullet Enterprises Limited (“Magic Bullet”), a company controlled by Michael Walker, Chief Executive of Verona, and Clive Page, Chairman of Verona, has agreed to subscribe for 500,000 Conditional Shares at the placing price.
Therapeutic area: Inflammatory diseases - Respiratory diseases
