Press Releases

Result of Placing

C4X Discovery Holdings plc

(“C4XD”, “C4X Discovery” or the “Company”)

Result of Placing

and Notice of General Meeting

Successfully raises approximately £15.0 million 

Advancing the next wave of out-licensing opportunities

21 October 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 99,169,286 Units and 7,973,572 EIS/VCT Placing Shares have been placed, conditionally, by Panmure Gordon at the Issue Price of 14.0 pence, to raise a total of approximately £15.0 million for the Company (before expenses). The Placing Shares represent approximately 89.9 per cent. of the issued ordinary share capital of the Company prior to the Placing.

The net proceeds of the Placing of approximately £14.5 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.

A General Meeting is being convened for the purpose of considering and, if thought fit, passing the Resolutions at 11.00 a.m. on 9 November 2020 at MEPC, Innovation Centre, Park Drive, Milton, Abingdon, OX14 4RY. A circular to shareholders, including a notice convening the General Meeting is expected to be posted tomorrow, and will also be available on the Company's website at the same time at http://www.c4xdiscovery.com/investors.html. Panmure Gordon is acting as financial adviser, nominated adviser and sole broker to the Company.

Completion of the Placing remains subject, inter alia, to the passing of the Resolutions at the General Meeting and to the Admission of the Placing Shares to trading on AIM. It is expected that First Admission will occur and dealings in the EIS/VCT Placing Shares will commence on 10 November 2020 at 8.00 a.m. (or such later date as Panmure Gordon and the Company may agree, being not later than 8.00 a.m. on 24 November 2020); and Second Admission will occur and dealings in the General Placing Shares will commence on 11 November 2020 at 8.00 a.m. (or such later date as Panmure Gordon and the Company may agree, being not later than 8.00 a.m. on 25 November 2020).

Assuming completion of the Placing, a total of 107,142,858 Placing Shares and 99,169,286 Warrants will be issued. Upon Second Admission, the Enlarged Share Capital will be 226,346,002 Ordinary Shares. On this basis, the Placing Shares will represent approximately 47.3 per cent. of the Enlarged Share Capital.

Following the announcement of the proposed placing issued at 7.06 a.m. on 21 October 2020, an amendment has been agreed in principle to certain terms of the Warrants. It remains agreed that the Warrants may be exercised in whole or in part, however it is now agreed that any partial exercise of a Warrant by a holder is subject to a minimum exercise of 1,000,000 Warrants (in aggregate) or the balance of the Warrants then outstanding, as opposed to a partial exercise being subject to a minimum exercise price of £1,000,000 as previously indicated in that earlier announcement.

Related Party Transaction

Polar Capital LLP ("Polar"), a substantial shareholder of the Company (as defined by the AIM Rules) has subscribed for 19,000,000 Units at the Issue Price of 14.0 pence. 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, being all of the Directors of the Company, 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:  

"The funds raised today will allow C4XD to continue advancing our goal - to use our cutting-edge drug discovery technologies and expertise to efficiently deliver world leading medicines which are developed by our partners for the benefits of patients. We are delighted to welcome our new investors as shareholders and would like to thank our existing shareholders for their continued support. We are confident that through the delivery of the next generation of high quality out-licensing opportunities we can deliver significant value for all our shareholders."

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.

The person responsible for arranging the release of this announcement on behalf of the Company is Bradley Richard Hoy, a director of the Company.