Shares of Hemogenyx Pharmaceuticals PLC (LON: HEMO) plunged 11% following the company’s announcement yesterday that it had drawn down £12 million from a convertible note financing facility with Mint Capital Ltd.
Investors sold the biotech company’s shares in anticipation of the dilution that will occur after the issuance of 7,741,935 shares as an arrangement fee to Mint Capital after receiving the above funds.
The biotechnology firm intends to use at least £6 million of the funds raised to fund the work needed to obtain clinical proof of concept for HEMO-CAR-T to treat acute myeloid leukaemia (AML).
Hemogenyx also revealed significant progress in developing its CDX antibody candidate and its HEMO-CAR-T drug candidate.
The company also reported positive progress in its cell therapy platform's pre-clinical studies, which is a novel method for programming immune cells to treat both viral infections, such as COVID-19 and specific cancers (the “CBR Platform”).
Dr Vladislav Sandler, CEO & Co-Founder of Hemogenyx Pharmaceuticals, commented:
“Our various product candidates have shown great results in our laboratory research and testing, and the Company is poised to move our product candidates into proof of concept and clinical studies. The use of the Financing Facility will enable Hemogenyx Pharmaceuticals to move our life-saving technologies forward rapidly, placing the Company in a highly competitive position in the treatment of cancer and viral diseases. This without doubt will be in the best interest of patients as well as the Company's shareholders.”
Hemogenyx share price
Hemogenyx shares fell 11% to trade at 7p having fallen from Wednesday’s closing price of 7.7p.