LONDON (ShareCast) - (Sharecast News) - Clinical stage biotechnology company Destiny Pharma said on Tuesday that it was looking to raise up to £7m in a conditional fundraising to continue progress towards Phase 3 in its two lead clinical assets.
The AIM-listed company, which focuses on the development of novel medicines to prevent life threatening infections, said net proceeds will also go towards finalising regulatory plans and strengthening the balance sheet as it progresses partnering discussions in relation to NTCD-M3, its Phase 3 ready treatment for the prevention of C. difficile infection (CDI) recurrence.

Destiny has conditionally placed just under 11.9m ordinary shares at 50p each to raise around £5.9m. The placing price is a discount of around 28% to the closing mid-market price of 69p on Monday.

The company also announced a subscription by certain company directors of an aggregate 140,000 new ordinary shares to raise £70,000.

Chief executive officer Neil Clark said: "We are very pleased with the results of the fundraising and the support from our existing and new shareholders. The funds will allow us to continue our progress towards the Phase 3 trials in our lead clinical assets, NTCD-M3 and CF-73 Nasal."

At 1450 GMT, the shares were down 27% at 50.45p.

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