Nuformix PLC on Monday said it has raised £70,000 through a subscription for 35.0 million new shares at a price of 0.20 pence each.

Nuformix is a London-based pharmaceutical development company targeting unmet medical needs in fibrosis and oncology via drug repurposing.

Nufromix’s subscription price represents a 33% discount to the shares closing price of 0.30p on Friday, being the last business day before the announcement.

The company’s shares were down 22% to 0.24 pence each in London on Monday around midday.

In addition, Nufromix said the participant in the subscription will be issued with one warrant for every one new share subscribed for, with an exercise price of 0.25 pence per warrant. These warrants will be exercisable for two years from admission.

If the warrants are exercised in full, it would result in the issue of an additional 35.0 million new shares. This will raise an additional £87,500 for progression of the company’s business activities.

The net proceeds of the subscription will be used by Nuformix primarily to further advance its NXP002 programme. NXP002 is a new form of tranilast which Nuformix is developing as a novel inhaled treatment for idiopathic pulmonary fibrosis.

The new shares will represent about 4.7% of the company’s enlarged share capital of 744.3 million shares. Admission is expected to take place on Friday.

Executive Director Dan Gooding said: ‘The funds raised through the subscription, the first from a new institutional shareholder, will progress NXP002 by undertaking additional key studies that in conjunction with our existing NXP002 data and ongoing studies, will enable the company to initiate discussions with potential licensees and support the overall progression of the NXP002 programme to improve the treatment of IPF via inhalation.’

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