Issue of Equity and Bracknor Facility Update

RNS Number : 1719F

ValiRx PLC

26 July 2016

 

ValiRx Plc

("ValiRx" or "the Company" or "the Group")

Issue of Equity and Discontinuation of Bracknor Facility

ValiRx Plc (AIM: VAL), a life science company with a focus on cancer diagnostics and therapeutics for personalised medicine, announces that further to the announcement made on 18 May 2016, it has received a conversion notice from Bracknor to convert £70,000 of the Convertible Loan Notes ("CLNs") into ordinary shares of the Company (the "Conversion").  Following the Conversion £180,000 CLNs remain in issue.

Issue of Equity

As a consequence of the Conversion, the Company has conditionally issued and allotted 1,093,750 ordinary shares at a price of 6.4p per share in the Company in consideration of the £70,000 loan note.  The 1,093,750 ordinary shares will rank pari passu with the existing ordinary shares.  Application for the 1,093,750 ordinary shares has been made to the London Stock Exchange and trading in these shares is expected to commence on or around 1 August 2016.

Following the issue of equity above the Company's issued share capital will comprise of 53,477,237 ordinary shares.

Discontinuation of the use of the Bracknor facility

The directors have resolved not to issue any further CLNs pursuant to the Bracknor facility.

The terms of the Bracknor facility were initially announced on 21 March 2016.  As at the date of this announcement the Company has issued £1 million of CLNs to Bracknor, of which £180,000 remain outstanding.  Warrants have also been issued to Bracknor in relation to the CLNs issued to date as previously announced.

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For more information, please contact:

ValiRx plc	Tel: [phone] www.valirx.com
Dr Satu Vainikka, Chief Executive	Tel: [phone]
Tarquin Edwards, Head of Communications.	Tel: [phone] [e-mail]
Mark Treharne, Corporate Development Manager	Tel: [phone] [e-mail]
Cairn Financial Advisers LLP (Nominated Adviser)	Tel: [phone]
Liam Murray / Jo Turner
Northland Capital Partners Limited (Joint Broker)	Tel: [phone]
Patrick Claridge / David Hignell (Corporate Finance) John Howes / Abigail Wayne (Broking)
Beaufort Securities Limited (Joint Broker)	Tel: [phone]
Jon Belliss

Notes for Editors

ValiRx Plc

ValiRx is a biotechnology oncology focussed company specialising in developing novel treatments for cancer and associated biomarkers.  It aims to make a significant contribution in "precision" medicine and science, namely to engineer a breakthrough into human health and well-being, through the early detection of cancer and its therapeutic intervention.

The Company's business model focuses on out-licensing therapeutic candidates early in the development process. By aiming for early-stage value creation, the company reduces risk considerably while increasing the potential for realising value. The group is already in licensing discussions with major players in the oncology field.

ValiRx's two classes of drugs in development, which each have the potential for meeting hitherto unmet medical needs by existing methods, have worldwide patent filings and agreed commercial rights.   They originate or derive from Word class institutions, such as Cancer Research UK and Imperial College. 

Until recently, cancer treatments relied on non-specific agents, such as chemotherapy.  With the development of target-based agents, primed to attack cancer cells only, less toxic and more effective treatments are now possible. New drugs in this group-such as those in ValiRx's pipeline-promise to greatly improve outcomes for cancer patients.

The Company listed on the AIM market of the London Stock Exchange in October 2006 and trades under the ticker symbol: VAL.

 

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