C4X raises £5.7m to support development activities

Drug discovery company C4X announced a proposed placing to raise up to £5.7m on Thursday, to support its corporate development and ongoing commercial activities.

The AIM-traded firm said shares would be placed with institutional investors at a price of 25p each, with Panmure Gordon conducting an accelerated bookbuild.

It said its growth strategy was focussed on out-licensing assets for clinical development to leading pharmaceutical companies, with the proceeds to be used to further support its corporate development and ongoing commercial activities.

In particular, the company said it would use the net proceeds to strengthen its balance sheet as partnering discussions progressed, continue to develop its portfolio of early-stage, high-value small molecule programmes, and to apply its technologies to validate “the next generation” of commercially-attractive targets and programmes.

“C4X is pleased to announce this investor-led financing headed by our long-term investor, Polar Capital, and other existing investors,” said chief executive officer Clive Dix.

“These funds will further strengthen the company's finances as we continue to progress our partnership discussions for NRF2 and to propel the next wave of out-licensing opportunities from C4X's drug discovery portfolio of early-stage, high-value small molecule programmes.

“With a strong balance sheet, state-of-the-art proprietary technologies, highly experienced scientific team, and industry experience, we believe C4X is in a strong position to deliver shareholder value.”

At 1212 BST, shares in C4X Discovery Holdings were up 2.39% at 25.75p.

Reporting by Josh White at Sharecast.com.