Immupharma PLC – Subscription to raise £2.66 million

ImmuPharma PLC (LSE:IMM), the specialist drug discovery and development company, is pleased to announce that it has entered into a subscription agreement with Lanstead Capital Investors LP (“Lanstead”), an institutional investor, together with a related sharing agreement, raising approximately £2.66 million. 

Highlights 

• Subscription for 26,565,200 new ordinary shares of 10 pence each in the Company (“Ordinary Shares”) (the “Subscription Shares”) by Lanstead at an issue price of 10 pence per Subscription Share (the “Issue Price”) to raise gross proceeds of approximately £2.66 million, representing approximately 19% of the Company’s existing issued share capital (the “Subscription”). The issue price represents a 26.5% discount to the closing mid-market price on 25 June. 
• This current subscription by Lanstead is the maximum amount under the Company’s existing authorisation of disapplication of pre-emption rights and represents a further supportive investment in the Company by Lanstead following the £4.43 million investment in February 2016, from which the Company ultimately received just over £5.0 million from Lanstead including the additional funds received through the Sharing Agreement over time. 
• The £2.66 million gross proceeds of the Subscription will be pledged by the Company pursuant to the Sharing Agreement with Lanstead. The Sharing Agreement, details of which are set out below, entitles the Company to receive back those proceeds on a pro rata monthly basis over a period of 24 months, structured to commence two months following the admission to AIM of the Subscription Shares, subject to adjustment upwards or downwards each month depending on the Company’s share price at the time. The Sharing Agreement provides the opportunity for the Company to benefit from positive future share price performance. 
• The Company has also agreed to issue to Lanstead 1,328,290 Ordinary Shares (the “Value Payment Shares”) in connection with entering into the Sharing Agreement. 
• The proceeds of the Subscription will be used primarily to fund the execution of the Company’s corporate strategy as announced on 7 May 2019. This includes progressing Lupuzor™ through both corporate partnerships and regulatory pathways and proactively pursuing the ‘spin-off’ of the subsidiary companies, Ureka and ELRO, in order to unlock their future potential and enhance value to shareholders. 
• Stanford Capital Partners acted as Coordinator and Broker on the transaction.

Commenting, ImmuPharma’s Chairman, Tim McCarthy, said:

“We are delighted to be welcoming back Lanstead as a significant shareholder of the Company. Lanstead has been very supportive of the Company since their first investment in 2016 and this latest subscription demonstrates their continued support and the alignment of both the Company and Lanstead’s belief of the potential of substantial value enhancement for shareholders in the future execution of the Company’s recently stated corporate strategy.”