Share Subscription and Issue of Equity Total Voting Rights
TURKU – FINLAND, 14 May 2019 – Faron Pharmaceuticals Ltd (“Faron”) (AIM: FARN), the clinical stage biopharmaceutical company, announces a subscription for new ordinary shares in aggregate in the capital of the Company ("Ordinary Shares") at a price of EUR 0.7598 (£0.65) per share (“Issue Price”) (the “Subscription”) raising gross proceeds of approximately EUR 1.34 million.
Timo Syrjälä and Acme Investments SPF Sarl (“Acme”), an entity wholly owned by Mr Syrjälä, an existing shareholder in the Company, has subscribed for 1,757,375 Ordinary Shares (the “Subscription Shares”) for a subscription value of EUR 1.34 million (£1.15 million). Following this Subscription, Mr Syrjälä's total holding in the Company's shares, which includes his indirect holding through Acme, is 4,519,375 shares, representing 12.14 per cent. of the enlarged issued share capital.
The Ordinary Shares are being issued by the Company pursuant to the remaining balance of the Directors' existing authority to allot ordinary shares in the capital of the Company for cash on a non-pre-emptive basis, as approved by shareholders at the Company's last annual general meeting which was held on 31 May 2018.
The net proceeds of the Subscription are expected to extend the Company’s working capital into mid-Q4 2019 and will also be applied towards advancement of the Company’s key products in line with the Company’s strategy set out in the recent placing announcement on 26 March 2019 and the annual results announcement on 7 May 2019. The Company will continue to explore further funding opportunities and in particular continue its discussions with potential licensing partners.
The Ordinary Shares are fully paid and will rank pari passu in all respects with the existing Ordinary Shares, including the right to receive all dividends or other distributions made, paid or declared in respect of such shares after Registration.
Application has been made to the London Stock Exchange for admission to AIM of the 1,757,375 Subscription Shares ("Admission"), and it is expected that Admission will take place at 8:00 a.m. on 16 May 2019.
Faron's enlarged issued number of shares is now 37,233,894 Ordinary Shares with voting rights attached. The Company has no shares in Treasury; therefore upon, the total number of voting rights in Faron is 37,233,894 (the "Enlarged Number of Shares and Votes").This figure may be used by shareholders as the denominator for the calculations by which they will determine whether they are required to notify an interest in, or a change to their interest in, the Enlarged Number of Shares and Votes of the Company.
Commenting on the Share Subscription Dr Markku Jalkanen, CEO of Faron, said: "Following the financing raised from new and existing shareholders earlier this year, we are very pleased to receive this additional shareholder support. The year 2019 is significant for Faron, as we seek to advance our clinical programmes for Traumakine, and especially for Clevegen. We are highly encouraged by the confidence our shareholders continue to show in the Company.”
Unless otherwise specified, this announcement contains certain translations of Euros into amounts in Pounds Sterling based on the exchange rate of £1.00 = €1.169.
The information contained within this announcement constitutes inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014.