Ananda Developments PLC said on Monday it had completed a £2.1 million placing and subscription, which will be used to fund further research for the company.

The London-based life sciences company is focused on the research and clinical development of cannabinoid-based therapies for a range of complex inflammatory pain conditions.

Ananda Developments raised gross proceeds of £2.1 million through a placing and subscription of new ordinary shares at 0.30 pence each. This included a £2 million subscription by Charles Morgan, the company’s chair.

The net proceeds from the placing and subscription will be put towards the manufacture of the MRX1 drug candidate for chemotherapy induced peripheral neuropathy & endometriosis phase II studies; the execution of a pharmacokinetic study for MRX1 in Australia; further pre-clinical heart fibrosis with ejection fraction studies, and general working capital.

Morgan and Melissa Sturgess, chief executive officer, also agreed to capitalise all unsecured debt owed to them, subject to additional share authorities being granted at an upcoming general meeting. This will ‘significantly strengthen the company’s balance sheet’, Ananda said.

Chief Executive Officer Melissa Sturgess said: ‘This significant equity investment from the company’s chairmen and other investors places us in a very strong position to progress our clinical trials and achieve significant value accretive milestones. We look forward to updating shareholders with our progress and remain committed to getting our MRX1 drug candidate through the trials, through licensing and into the NHS and other licenced drug markets.’

Ananda intends to issue up to 33.3 million new shares to existing shareholders this month via the Winterflood Retail Access Platform to raise up to £100,000.

Shares in Ananda Developments last traded at 0.35 pence each on AQSE in London on Monday afternoon.

Copyright 2024 Alliance News Ltd. All Rights Reserved.