The Hemogenyx Pharmaceuticals PLC (LON: HEMO) share price plunged 19.3% after revealing that it had raised £4,056,250 (before expenses) by issuing 162,250,000 new ordinary shares priced at 2.5p each.
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The market's adverse reaction to the announcement was justified, given that the news shares were sold at a discount to HEMO’s closing price on Wednesday. The company noted that it had been advancing its end-to-end process for manufacturing HEMO-CAR-T cells.
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Hemogenyx told investors that the monies raised through the share issue would help fund the advancement of its HEMO-CAR-T product into clinical trials and to allow it to continue developing other product candidates to treat viral infections based on its Chimeric Bait Receptor (CBR) platform.
Today’s placing was conducted by the company’s joint placement agents, SP Angel Corporate Finance LLP and Peterhouse Capital Limited. Hemogenyx has written to the London Stock Exchange Main Market to have the new shares admitted for trading by 2 February 2023.
Earlier this week, Hemogenyx announced that it had completed the third Process Qualification (PQ) run of the end-to-end manufacturing process of HEMO-CAR-T cells at its current Good Manufacturing Practice (cGMP) compliant clean rooms.
The PQ run will be followed by analytical release tests conducted by Hemogenyx to verify the quality of the HEMO-CAR-T cells manufactured. A third party will also test the HEMO-CAR-T cells to verify that they comply with the mandatory quality attributes.
The company is preparing to submit an Investigational New Drug (IND) application to the US Food and Drug Administration (FDA) after completing the above tests to gain approval to run Phase I clinical trials of HEMO-CAR-T.
Dr Vladislav Sandler, Hemogenyx Pharmaceuticals CEO, commented: “Shareholders are aware of the Company's recent progress in the development of HEMO-CAR-T and our CBR platform. I am pleased to announce this placing, which will enable the Company to progress with these two key product candidates. It is important that we move HEMO-CAR-T into the clinic as quickly as possible and maintain and consolidate our lead in the area of combatting existing and emerging viral infections using our CBR-based product candidates.”
*This is not investment advice.
Hemogenyx (HEMO) share price.
The Hemogenyx share price plunged 19.33% to trade at 2.42p, from Wednesday’s closing price of 3.00p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.