Immupharma raises £2.66m from subscription agreement with institutional investor

Immupharma revealed Lanstead will subscribe for 26.56m new ordinary shares at an issue price of 10p each, representing approximately 19% of the company's existing issued share capital, at a 26.5% discount to the closing mid-market price of the group's shares on Tuesday.

The AIM-listed firm told shareholders that the subscription, which was the maximum possible amount under Lanstead's existing authorisation, marked a further supportive investment in the company by Lanstead, following the £4.43m it poured into the group back in February 2016.

Immupharma also inked a sharing agreement with Lanstead, which entitled the company to recoup the proceeds on a pro rata monthly basis over a period of 24 months, allowing the company to benefit from positive future share price performance, and agreed to issue another 1.32m ordinary shares to Lanstead in connection with it.

The group intends to use the funds to cover the execution of its corporate strategy.

Chairman Tim McCarthy said: "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."

As of 1115 BST, Immupharma shares sank 16.76% to 11.32p.