Faron Pharmaceuticals extends funding agreement with IPF

Faron Pharmaceuticals announced on Tuesday that it has extended its agreement with lender IPF to ensure continued financial support as it progressed towards securing longer-term funding.

The AIM-traded firm said the extension would enable it to maintain its focus on preparations for securing future funding.

Key terms of the extension included a minimum cash covenant set at €6m until 20 May, subject to ongoing clinical success with the ‘BEXMAB’ trial.

Following that, the cash covenant would decrease to €5.5m until 12 June, and then to €4.5m until a minimum equity raise of €10m had been achieved.

As part of the agreement, IPF would receive a waiver fee and additional new warrants totaling €0.5m euros, with a strike price based on market conditions.

The extension would be valid until 27 June, contingent on meeting the specified terms and securing subscriptions or guarantees for a public offer amounting to €10m by 11 June.

Faron said it had implemented significant cost-saving measures in recent months, and expected to maintain its cash runway into the third quarter of 2024.

At 1613 BST, shares in Faron Pharmaceuticals were up 4.04% at 145.65p.

Reporting by Josh White for Sharecast.com.