Neil Clark & Shaun Claydon of Destiny Pharma: new funds will progress two lead clinical assets towards Phase 3 trials
Neil Clark, CEO & Shaun Claydon, CFO of Destiny Pharma #DEST explain how their funds raised continue progress towards Phase 3 trials in its two lead, clinical assets, NTCD-M3 and XF-73 Nasal, and finalise regulatory plans, whilst also strengthening the balance sheet as the Company progresses partnering discussions in relation to NTCD-M3.
· Placing and Subscription to raise £6.0 million (before expenses) through the issue of 12,000,000 new Ordinary Shares at the Issue Price.
· The net proceeds of the Fundraising will allow the Company to continue progress towards Phase 3 trials in its two lead, clinical assets, NTCD-M3 and XF-73 Nasal and finalise regulatory plans, whilst also strengthening the balance sheet as the Company progresses partnering discussions in relation to NTCD-M3.
· This Fundraising comes at an important time for Destiny Pharma and the Board decided to proceed in very difficult market conditions because it was felt that any delay in activity on either of the key assets would, in the Board's view, significantly reduce the value of both products and leave the Company in a vulnerable position.
· The New Shares, assuming full take-up of the Open Offer, will represent approximately 18.8 per cent. of the Enlarged Share Capital following Admission.
· The Issue Price represents a discount of approximately 28 per cent. to the closing mid-market price of 69 pence per existing Ordinary Share on 7 March 2022, being the latest practicable date prior to this Announcement.
· Certain of the Directors have conditionally agreed to subscribe for, in aggregate, 140,000 new Ordinary Shares in the Subscription.
· A General Meeting to approve the resolutions (the "Resolutions") required to implement the Fundraising is to be held at 11.00 a.m. at the offices of finnCap Limited ("finnCap" or the "Broker"), One Bartholomew Close, London, EC1A 7BL on 28 March 2022 (the "General Meeting"). A detailed timetable of events is set out in Appendix I of this Announcement.
About Destiny Pharma
Destiny Pharma is a clinical stage, innovative biotechnology company focused on the development of novel medicines that can prevent life-threatening infections. Its pipeline has novel microbiome-based biotherapeutics and XF drug clinical assets including NTCD-M3, a Phase 3 ready treatment for the prevention of C. difficile infection (CDI) recurrence which is the leading cause of hospital acquired infection in the US and also XF-73 nasal gel, which has recently completed a positive Phase 2b clinical trial targeting the prevention of post-surgical staphylococcal hospital infections including MRSA. It is also co-developing SporCov, a novel, biotherapeutic product for the prevention of COVID-19 and other viral respiratory infections and has earlier grant funded XF research projects.
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