Shares of Sareum Holdings (LON: SAR) are rallying on Tuesday, up 14% after the company said it has raised £1.47 million before expenses through a subscription for 30 million new ordinary shares priced at 4.9p each.
Sareum said the subscription is by the same high net worth individual who subscribed to shares valued at £900,000, which was announced on 1 June 2021.
Under the terms, the subscriber will also be issued one five-year warrant, exercisable at the subscription Price, for every three shares issued.
The subscription price was set at a discount of approximately 14% to the closing price of Sareum Shares on 14 June 2021.
Sareum said the net proceeds will be used to progress its SDC-1801 and SDC-1802 TYK2/JAK1 inhibitor drug development programs as well as for working capital purposes.
The company is targeting the completion of preclinical studies for SDC-1801 in Q3.
Dr Tim Mitchell, CEO of Sareum Holdings, said: “We are delighted to have raised these additional funds through this second subscription by the same high net worth individual. These new funds give us greater flexibility to facilitate the planning and execution of our development programmes with our lead internal TYK2/JAK1 inhibitor programme, SDC-1801, which we are advancing through its final preclinical studies.
“We are targeting the completion of these studies in Q3 2021 and are finalising our plans for the initial clinical trials, which we would expect to commence shortly thereafter, subject to funding.”
Sareum's share price is currently at 6.5p, up 14.91%. So far in 2021, they have gained 139%.
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