Finance News

Results of the Placing and Subscription and Issue of Equity

4.0 from 1 vote
Tuesday, October 10, 2017

TURKU - FINLAND - Faron Pharmaceuticals Oy ("Faron" or "Company") (LON: FARN), the clinical stage biopharmaceutical company, is pleased to announce that, following the announcement on 5 October 2017, the proposed Placing and Subscription has been subscribed for in full, in satisfaction of the Placee Condition. Pursuant to the Placing and Subscription, the Company is raising approximately £10.0 million before expenses by way of the Placing of 1,123,750 Placing Shares and the Subscription of 126,250 Subscription Shares at the Issue Price of 800 pence per share. The Placing and Subscription have been supported by the participation of existing and new institutional shareholders. The Board of Directors of Faron has resolved on the issuance of the Placing Shares and the Subscription Shares pursuant to the existing authorisation granted by shareholders at the Company's Annual General Meeting held on 16 May 2017 and approved the subscriptions.

The First Issue Shares, being 537,713 Placing Shares, including those to be issued to the VCT Investors and the EIS Investors, and 59,885 Subscription Shares, are expected to be registered with the Finnish Trade Register on or about 10 October 2017. The First Issue Shares will, when registered, be credited as fully paid and will rank pari passu with the existing Ordinary Shares in issue in all respects, including the right to receive all dividends or other distributions declared, made or paid by the Company by reference to record dates falling after the date of registration of the First Issue Shares with the Finnish Trade Register.

Application has been made to the London Stock Exchange for admission to trading on AIM of the 597,598 First Issue Shares ("Admission"), and it is expected that Admission of the First Issue Shares will become effective and that dealings in the First Issue Shares will commence on or around 8:00 a.m. (BST) on 11 October 2017.

Faron's enlarged issued number of shares immediately following registration and Admission of the First Issue Shares will be 28,512,142 Ordinary Shares with voting rights attached. The Company has no shares in Treasury; therefore upon, and subject to, registration, the total number of voting rights in Faron will be 28,512,142 (the "Enlarged Number of Shares and Votes"). This figure may be used by shareholders as the denominator for the calculations by which they will determine whether they are required to notify an interest in, or a change to their interest in, the Enlarged Number of Shares and Votes of the Company.

A further announcement will be made regarding the issuance, and application for Admission, of the Second Issue Shares (being the remaining Placing Shares and Subscription Shares to be issued pursuant to the Placing and Subscription) and the new total number of voting rights in Faron following such Admission in due course. It is expected that Admission of the Second Issue Shares will take place on or around 13 October 2017. The issue and allotment of the Second Issue Shares remains conditional upon, inter alia, Admission of the First Issue Shares taking place, the Issue Condition relating to the Second Issue Shares being satisfied and the Placing Agreement otherwise remaining in full force and no material breach of its terms having occurred.

Commenting on the successful Placing and Subscription, Dr Markku Jalkanen, CEO of Faron, said:

"With recent positive advice from the FDA, Faron is now rapidly preparing to become a commercialisation-stage company focused on moving Traumakine towards the market. This funding round not only helps us to make those commercialisation preparations but also expedites our clinical development activities for Clevegen®. We thank current investors for their continued support and welcome our new institutional investors to Faron."

The information contained within this announcement constitutes inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014.

All capitalised terms in this announcement are with reference to the announcement made by Faron at 7.00 a.m. (BST) on 5 October 2017.

About Faron Pharmaceuticals Ltd

Faron (AIM:FARN) is a clinical stage biopharmaceutical company developing novel treatments for medical conditions with significant unmet needs. The Company currently has a pipeline focusing on acute organ traumas, vascular damage and cancer immunotherapy. The Company's lead candidate Traumakine, to prevent vascular leakage and organ failures, is currently the only treatment for Acute Respiratory Distress Syndrome (ARDS) undergoing Phase III clinical trials. There is currently no approved pharmaceutical treatment for ARDS. An additional European Phase II Traumakine trial is underway for the Rupture of Abdominal Aorta Aneurysm ("RAAA"). Faron's second candidate Clevegen is a ground breaking pre-clinical anti-Clever-1 antibody. Clevegen has the ability to switch immune suppression to immune activation in various conditions, with potential across oncology, infectious disease and vaccine development. This novel macrophage-directed immuno-oncology switch called Tumour Immunity Enabling Technology ("TIET") may be used alone or in combination with other immune checkpoint molecules for the treatment of cancer patients. Faron is based in Turku, Finland. Further information is available at


Faron Pharmaceuticals Oy
Dr Markku Jalkanen, Chief Executive Officer
Consilium Strategic Communications
Mary-Jane Elliott, Chris Welsh, Philippa Gardner, Lindsey Neville
Phone: +44 203 709 5700
Westwicke Partners, IR (US)
Chris Brinzey
Phone: +1 339 970 2843
Cairn Financial Advisers LLP, Nominated Adviser
Emma Earl, Tony Rawlinson
Phone: +44 207 213 0880
Panmure Gordon (UK) Limited, Sole Bookrunner and Corporate Broker
Freddy Crossley, Duncan Monteith (Corporate Finance)
Tom Salvesen (Corporate Broking)
Phone: +44 207 886 2500
Whitman Howard Limited, Joint Corporate Broker
Ranald McGregor-Smith, Francis North
Phone: +44 207 659 1234


Source: Faron Pharmaceuticals Oy
4.0 from 1 vote
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