Redx Pharma jumps on funding package from Redmile and Sofinnova Partners
announced on Monday that US based hedge fund Redmile Group, and French Venture Capital firm Sofinnova Partners, intend to fund the AIM-listed firm for up to £26.3 million.
Redx Pharma, the UK-based oncology and fibrotic disease focused biotech company said it will issue 11.5 million new shares to Redmile Group at 11.2p, expected to commence trading on AIM on Wednesday.
Redx said the £1.3 million subscription proceeds extends its cash runway until the end of April 2020, and that Redmile intends to provide a £5 million short term loan, to be finalised ‘as soon as practicable’.
Redx Pharma also told investors that Redmile and Sofinnova Partners intend to commit a further £20 million in the form of a convertible loan.
Shares in Redx Pharma were trading 38% higher at 10.71p during Monday morning trading
Redx Pharma mentioned that while there can be no certainty of an agreement, they were ‘greatly encouraged’ by positive discussions to date.
Jeremy Green, Founder and Portfolio Manager of Redmile Group commented: "Redx, with its deep expertise in medicinal chemistry, has a proven track record of designing high quality, commercially attractive molecules that have the potential to be effective drugs to treat significant unmet medical conditions.”
He said: “We are delighted to partner with Redx in the next phase of growth of the Company."
Redmile is a US based specialist healthcare and life sciences investment firm with $4.18 billion worth of assets according to its latest SEC Form 13F filing.
Chairman of the Board of Redx, Iain Ross commented: "The Board is pleased that it is able to bring this period of uncertainty regarding an offer for the Company to an end. We believe that with Redmile and Sofinnova Partners support we will be able to secure a way forward for the Company that delivers better value for shareholders.”
“We are delighted that MGL, which has provided the Company with robust support particularly throughout the last 3 years, continues to share our vision to build a significant enterprise and that Redmile and Sofinnova Partners, both established and sophisticated investors in the healthcare / biotech sector wish to support the Company."
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