The ValiRx Plc (LON: VAL) share price plunged 9.63% after launching a broker offer to raise a maximum of £500,000. Investors' adverse reaction to the news was justified given that the company sold the new shares at 11p each, representing a discount to Thursday’s closing price.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The broker offer will be handled by Turner Pope Investments (TPI) Limited, and participating investors will get one fundraise warrant for every four broker offer shares they buy, exercisable at 14p each over three years from the date of admission of the broker shares.
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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
Investors interested in the broker offer can register their interest via a web link on the TPI broker platform. ValiRx will review the bids before accepting them, with the company prioritising bids from existing shareholders in case the offer is oversubscribed.
The last significant announcement from ValiRx was its quarterly operational and strategy update released on December 6, 2022, revealing that the evaluation agreement with Hokkaido University (Japan) had been extended to allow it to conduct further experimental testing on the drug candidate for an additional six-month period.
ValiRx also issued an update about its Evaluation Agreement with the University of Barcelona, which had completed 9 of the 12 months and was on track to complete all the agreed milestones.
The life sciences company also issued an update on its assets, including its pre-clinical and clinical assets. The firm’s pre-clinical assets include CLX001, which treats triple-negative breast cancer; VAL301, which treats endometriosis; and BC201, which treats sepsis.
ValiRx’s clinical assets include VAL201, which treats prostate cancer and VAL401, which treats adenocarcinoma. The company is making decent progress on all its assets and has promising prospects.
Looking at the price chart below, we can see that ValiRx shares are trading near a long-term support level, which has been in place since August 2020. We will likely see further gains if the share price bounces off this crucial level.
*This is not investment advice.
ValiRx share price.
ValiRx shares plunged 9.63% to trade at 11.22p, from Thursday’s closing price of 12.30p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.