Shield Therapeutics PLC on Thursday announced steps to improve its financial situation, as it revealed a slightly reduced loss in the first half of 2023.
Shield said it is seeking to raise £5.0 million from the sale of new shares at 8.0 pence each in a subscription and placing, together with an offer to retail investors via the REX platform.
Shield shares were down 19% at 7.92p in London on Thursday morning.
At the same time, Shield said it has secured a $20 million senior secured debt facility from SWK Holdings Corp, a Dallas, Texas-based provider of finance to the healthcare and life science sectors.
Shield said it will use funds from the equity raise and debt facility to invest in its US commercial activities ‘with the goal to accelerate the launch curve and increase the net sales price for Accrufer’, its lead iron deficiency treatment. Shield also will repay the remaining $5.7 million on an existing loan.
Pretax loss in the six months that ended June 30 was $11.8 million, narrowed from $14.7 million a year before, as revenue grew by 66% to $4.3 million from $2.6 million. Shield also booked $4.3 million in other operating income in the recent period, compared to no such income a year before. This represented a previously deferred upfront payment from Viatris Inc, Shield’s US sales partner.
‘I am pleased to report that Shield has had an excellent first half of 2023,’ said Chief Executive Officer Greg Madison. ‘We successfully initiated the Accrufer commercial partnership with Viatris, completed the build out of the combined team and effectively implemented our new commercial growth strategy and marketing campaign.’
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