C4X Discovery Holdings plc
(“C4XD”, “C4X Discovery” or the “Company”)
Result of Placing
Successfully raises approximately £1.6 million led by Polar Capital
Advancing the next wave of out-licensing opportunities
7 May 2020 - C4X Discovery Holdings plc (AIM: C4XD), a pioneering Drug Discovery company, is pleased to announce the completion of the Placing announced earlier today.
A total of 10,836,700 Placing Shares have been placed by Panmure Gordon (UK) Limited at the Issue Price of 15 pence per new Ordinary Share to raise a total of approximately £1.6 million for the Company (before expenses), utilising the exisiting shareholder authorties in full in an oversubscribed Placing. The Placing Shares being issued represent approximately 10.0 per cent. of the issued ordinary share capital of the Company prior to the Placing. The Issue Price represents a premium of 5.3 per cent. to the Company’s mid-market closing price as at 6 May 2020, being the last practicable date before the announcement of the Placing.
The net proceeds of the Placing of approximately £1.5 million, will be used by the Company to further strengthen its balance sheet as partnering and strategic collaborations progress, and to support working capital during the progression of its pipeline portfolio. The net proceeds of the Placing are expected to provide the Company with at least twelve months working capital. The Company's assumptions with regards to its working capital assume that a material tax credit will be received both this year and in H1 2021, as has been the case in previous years.
Completion of the Placing remains subject, inter alia, to Admission. It is expected that dealings in the Placing Shares will commence on 12 May 2020. Assuming completion of the Placing, the Enlarged Share Capital is expected to be 119,203,144 Ordinary Shares. On this basis, the Placing Shares, will represent approximately 9.1 per cent. of the Enlarged Share Capital.
Related Party Transaction
Polar Capital LLP ("Polar"), a substantial shareholder of the Company (as defined by the AIM Rules) has subscribed for 5,000,000 Placing Shares at the Issue Price of 15 pence per Placing Share. The participation by Polar in the Placing constitutes a related party transaction for the purposes of the AIM Rules. The independent Directors for the purpose of the Placing, having consulted with the Company's nominated adviser, Panmure Gordon, consider that the terms of the related party transaction are fair and reasonable insofar as the Shareholders are concerned.
Clive Dix, CEO of C4X Discovery, stated on the successful Placing:
“We would like to thank Polar Capital and our other new and existing investors for their active support of C4XD and continued belief in our vision. It is encouraging to see investor understanding of the ongoing long-term contribution of the life sciences industry and the value of innovative, early-stage drug discovery amidst the uncertainties generated by the COVID-19 pandemic. These additional resources will support our continuing scientific progress and commercial discussions across our portfolio.”
The capitalised terms used in this announcement have the same meanings as in the announcement published by the Company at 7.00 a.m. today unless otherwise stated.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014 (MAR). The person responsible for arranging the release of this announcement on behalf of the Company is Bradley Richard Hoy, a director of the Company.