£3.1 million was successfully raised via existing Redx Pharma Limited shareholders for a pre-IPO funding round.
During the past 12 months, the Board has evaluated in detail the potential for an IPO to gain access to significant capital markets and create liquidity for shareholders, subject to successful delivery of the company’s short-term deal pipeline.
It is the Directors’ belief that Admission would provide access to significant potential investors whilst also providing a quoted price for the company’s shares. An added benefit is that it would provide the company with increased visibility and credibility within the global pharmaceutical industry. It would also give the company the option to take programs to the next value point – judged on a case-by-case “risk-reward”basis.
The company is currently working with its advisers to finalise its IPO strategy and the intention is to raise sufficient funds to give the company the opportunity to secure the best return for Shareholders from the existing pipeline and provide a stronger negotiating position in deal discussions. An IPO on AIM will not jeopardise Shareholder’s investment under EIS in the company to date.
The principal purposes of this pre-IPO funding round are to:
- Provide finance through to an anticipated IPO;
- Advance the current pipeline and support in vivo studies to provide proof of concept data to enable further license deals; and
- Provide working capital for the company’s intellectual property and business development activities.