Press Releases

Results of Placing

C4X Discovery Holdings plc

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

 Results of Placing

 Successfully raises £7 million

 Advancing the next wave of out-licensing opportunities

24 October 2019 - 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 46,666,667 Placing Shares and Subscription 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 £7.0 million for the Company (before expenses). The Placing was made up of 46,466,667 Placing Shares and concurrently with the Placing, Directors of the Company will subscribe for 200,000 Subscription Shares, also at the Issue Price. The Placing Shares and Subscription Shares being issued represent approximately 80.7 per cent. of the issued ordinary share capital of the Company prior to the Placing and Subscription. The Issue Price represents a discount of 63 per cent. to the Company’s mid-market closing price as at 23 October 2019, being the last practicable day before the announcement of the Placing.

The net proceeds of the Placing and Subscription of approximately £6.6 million receivable by the Company, will be used to strengthen its balance sheet as near term and other licensing discussions and strategic collaborations progress, and support working capital during the expansion of its pipeline portfolio.

A circular to shareholders containing full details of the Open Offer and convening the General Meeting is expected to be posted by 6.00 p.m. tomorrow, and will also be available on the Company’s website at the same time at http://www.c4xdiscovery.com/investors.html. Panmure Gordon (UK) Limited is acting as financial adviser, nominated adviser and broker to the Company.

Clive Dix, CEO of C4X Discovery, stated on the successful Placing and Subscription: “In these unprecedented times for investment in our industry, leading to extremely turbulent market conditions, we are delighted to have raised £7.0 million to support the execution of our strategy which is reflective of confidence in the future value of our business. We want to thank both our existing shareholders for their continued support, belief and confidence in our business and to welcome our new shareholders for which this fundraising offers an opportunity to build shareholder value.

"C4XD aims to address industry’s biggest challenges by identifying promising disease targets and solving chemistry challenges to generate attractive pre-clinical programmes. Our goal is to maximise the capital raised so that we can deliver on our strategy. The monies raised put us in a strong position to drive the expansion of our pipeline and to advance the next wave of deal opportunities in the C4XD portfolio as momentum continues to build across our key out-licensing projects.”

Completion of the Placing, Subscription and Open Offer remains subject, inter alia, to the passing of the Resolutions at the General Meeting and to First Admission and Second Admission. It is expected that dealings in the EIS/VCT Shares will commence on 14 November 2019, and dealings in the General Placing Shares, Subscription Shares and Open Offer Shares will commence on 15 November 2019. Assuming completion of the Placing, Subscription and full take up of all Open Offer Shares offered under the Open Offer, upon Second Admission, the Enlarged Share Capital is expected to be 110,880,707 Ordinary Shares. On this basis, the New Ordinary Shares, will represent approximately 47.9 per cent. of the Enlarged Share Capital.

Related Party Transaction

Certain Directors in the Company have subscribed for Subscription Shares in connection with the Capital Raising. The number of Subscription Shares conditionally subscribed for by each such Director pursuant to the Capital Raising, and their resulting shareholdings on Admission, are set out below:

Shareholder

Existing Ordinary Shares held

Number of Existing Ordinary Shares held as a percentage of all Existing Ordinary Shares

 

Number of Subscription Shares subscribed for

Ordinary Shares held post-Admission*

Percentage of Enlarged Share Capital held*

Clive Dix

1,455,586

2.5%

133,334

1,588,920

1.43%

Natalie Walter

0

0

66,666

66,666

0.06%

*assuming the Open Offer is fully subscribed

The participation of certain Directors as stated above will be related party transactions for the purposes of the AIM Rules. The Directors who are independent of the related party transaction, being Eva-Lotta Allan, Brad Hoy, Craig Fox, Alex Stevenson and Harry Finch, having consulted with Panmure Gordon, the Company’s nominated adviser for the purposes of the AIM Rules, consider the terms of the participations of each of Clive Dix and Natalie Walter in the Capital Raising to be fair and reasonable insofar as Shareholders are concerned.

The timetable and 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).