N4 Pharma shares tank after £0.6m fundraise

N4, whose product Nuvec is a novel delivery system for cancer treatments and vaccines, announcing a placing of 118m new ordinary shares and a subscription of 8m shares at an an issue price of 0.5p, a discount to Thursday's closing price of 0.63p.

The stock was trading 19% lower at 0.51p by 1100 BST.

The proceeds of the fundraise will be used to advance N4's three primary work streams whilst also providing working capital into 2025, the company said.

"We are pleased to have raised these funds in difficult market conditions for small caps. The money will underpin our work efforts whilst we look to move through key milestones and, we believe, value inflexion points, across our three main work streams during the rest of the year," said chief executive Nigel Theobald.

"In doing so, we hope to be able to co-market our combined technologies with SRI, complete a proof of concept for an oral IBD product and achieve orphan designation and pre IND approval for Nanogenics' ECP105. All the while this work will be widening and strengthening our IP position across the company."