Shares of European-based biopharma company MGC Pharmaceuticals (LON: MXC) have fallen Tuesday after it told investors it has raised £5.5 million in a share placement.
The company said they had strong support from UK institutional investors and a US-based fund.
MGC shares are currently down 8% at 2.152p after initially hitting a low of 2p early in the session.
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The company said the placement shares will be issued at a price of 2p each, representing a 13% discount from the closing price on 29 November.
The London-listed company will use the money raised for CimetrA Emergency Use Authorisation applications and testing procedures in five key countries in Central/Eastern Europe and Central Asia, a new Malta production facility fit-out, costs of additional CimetrA dosing trials in the USA and Russia, and CannEpil clinical trials in the US with US Distribution partner AMC Holdings.
Last week, MGC shares rose after it received a $750,000 payment from AMC Holdings as part of a supply and distribution agreement.
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