TIDMN4P
RNS Number : 8099M
N4 Pharma PLC
13 May 2020
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the
publication of this announcement via a Regulatory Information
Service, this inside information is now considered to be in the
public domain.
13 May 2020
N4 Pharma Plc
("N4 Pharma" or the "Company")
Placing to raise GBP2 million and appointment of Joint
Broker
N4 Pharma Plc (AIM: N4P), the specialist pharmaceutical company
developing Nuvec(R), a novel delivery system for cancer treatments
and vaccines, is pleased to announce that it has raised
GBP2,029,250 (GBP1,907,495 net of expenses) through an
oversubscribed placing of 50,731,250 new ordinary shares of 0.4p
each in the Company (the "Placing Shares") at an issue price of
GBP0.04 per Placing Share (the "Placing").
Following the successful Placing, the Company will appoint
Turner Pope Investments (TPI) Limited ("TPI") as Joint Broker with
effect from admission of the Placing Shares to trading on AIM, as
detailed below.
Highlights
-- Oversubscribed placing to raise GBP2.029m utilising the Company's existing share authorities
-- The Placing Shares will represent approximately 33.33 per
cent. of the enlarged issued share capital of the Company
-- The net proceeds of the Placing will be applied to:
o expand the proof of concept research on the Covid-19 DNA
plasmid project, as announced on 25 March 2020;
o increased manufacture of the Nuvec(R) nanoparticle for further
collaboration with partners;
o further studies on the use of Nuvec(R) to support the recently
filed patent on use of Nuvec(R) for viral vector manufacture;
and
o fund the continued growth of the Company, including for
working capital purposes.
-- Mixture of new and existing institutional and other investors took part in the Placing.
Nigel Theobald, Chief Executive of N4 Pharma, commented: " We
are delighted with the support for the Company through the Placing
in challenging market conditions. We continue to demonstrate the
potential Nuvec(R) has as a delivery system for nucleic acids. The
current focus on COVID-19 highlights how important delivery systems
are for developing successful vaccines. The funds raised will allow
us to accelerate work to aid our commercial discussions to license
Nuvec(R). "
Background to and reasons for the Placing
As announced on 25 March 2020, N4 Pharma has secured access to
the plasmid DNA which encodes for the spike protein of COVID-19,
which is being used by major pharmaceutical companies that are
focused on developing a vaccine for the new coronavirus.
The Company has commenced a proof of concept research project
using a COVID-19 DNA plasmid, provided by National Institute for
Health ("NIH") in the USA, for the purpose of demonstrating the
potential ability of Nuvec(R) to be used as a delivery system by
potential collaboration partners developing COVID-19 DNA or RNA
vaccines. The proof of concept work will show whether Nuvec(R) is
capable of loading the COVID-19 plasmid and transfecting cells with
the plasmid in vitro. Assuming successful in vitro transfection,
the Company will then undertake a non-clinical proof of concept in
vivo study to demonstrate the improved transfection when using
Nuvec(R), compared to not using the delivery system, by measuring
the production of the antigenic protein and antibodies generated
against the encoded COVID-19 protein.
The Company has appointed an experienced contract research
organisation, Evotec, that it has worked with previously, to
undertake the program of studies outlined above. It is important to
note that N4 Pharma is not itself attempting to develop a vaccine
for coronavirus, it is purely seeking to demonstrate whether
Nuvec(R) could work as a delivery system for a DNA or RNA vaccine
when it is developed.
On 24 April 2020, the Company announced the filing of a new
patent which focussed on how Nuvec(R) can be used to make viral
vectors more efficient. With the prospect of a COVID-19 vaccine
nearing, the industry is rapidly shifting its focus to
manufacturing capacity and ensuring the vaccine can be produced at
scale, fast and safely.
Many companies developing COVID-19 vaccines are using viral
vectors such as lentivirus to ensure effective delivery of the
vaccine. Production of the lentivirus can be a cumbersome and
challenging process and any improvement to that process could
result in more vaccines being available faster. In recent research
conducted by the Company, N4 Pharma's silica nanoparticle system
Nuvec(R) has been shown to offer an improvement over the current
process by being able to bind all three plasmids normally used to
produce the virus. This enhances productivity while using less
plasmid, as any cell being transfected with Nuvec(R) will take up
all three plasmids necessary for viral production. Preliminary data
has shown that as little as 5 micrograms ("ug") total plasmid can
yield high lentivirus titres (a titre is a measure of how much a
sample can be diluted before antibodies or antigens can no longer
be detected).
The Directors have decided to undertake the Placing at this time
in order to provide the Company with the resources to enhance the
proof of concept work for COVID-19, investigate further how
Nuvec(R) might increase the efficient production of viruses and
viral vectors, accelerate GMP readiness of clinical trial quantity
supply of Nuvec(R) and continue to progress its existing research
pipeline.
Use of proceeds
In addition to general working capital purposes, the net funds
raised from the Placing will be used to fund the following specific
areas:
i. Proof of concept research on the COVID-19 plasmid DNA project
The funds will be used to accelerate this proof of concept
project and will include the following key activities:
-- Establish and validate detection assays for the COVID-19 protein.
-- Conduct cell-based assays to confirm whether Nuvec(R) can
bind the plasmid, transport it into cells and effect efficient
production of the COVID-19 protein.
-- Undertake in vivo experiments once cell-based results are
available. Positive in vivo results would indicate that Nuvec(R)
has the potential to provide an effective platform for the
development of a human COVID-19 vaccine.
-- Investigate GMP formulation and manufacture of a vaccine
containing Nuvec(R) loaded with the COVID-19 DNA plasmid.
ii. Manufacturing of the Nuvec(R) nanoparticle.
Small-scale manufacturing of Nuvec(R) has been successfully and
repeatedly established in a development laboratory. To supply
immediate needs and prepare for collaborations with partners the
proceeds of the Placing will also be used for the following
activities:
-- Technology transfer to a commercial manufacturer to provide
multi-gram scale quantities of Nuvec(R).
-- Further optimisation of the chemical processes involved in
manufacture to facilitate scale production of Nuvec(R).
-- Develop pharmaceutical quality processes and clinical GMP
readiness to support fast use of Nuvec(R) by a partner in
developing a human vaccine.
iii. Use of Nuvec(R) in viral vector manufacture.
Preliminary data has shown that as little as 5ug of a triple
plasmid can yield high lentivirus titres when combined with
Nuvec(R). The proceeds of the Placing will also be used for the
following activities:
-- Further optimisation of the titres achievable when using
Nuvec(R) loaded with triple plasmids for lentivirus
manufacture.
-- Comparative analysis of how Nuvec(R) compares to existing
reagents using low levels of initial plasmid.
Details of the Placing and Total Voting Rights
A total of 50,731,250 Placing Shares are to be issued pursuant
to the Placing at a price of 4 pence per Ordinary Share. The
Placing has been conducted utilising the Company's existing share
authorities. The Placing is conditional, inter alia, on admission
of the Placing Shares to trading on AIM ("Admission") becoming
effective.
Application has been made to the London Stock Exchange for the
Placing Shares to be admitted to trading on AIM. It is expected
that Admission will become effective and that dealings in the
Placing Shares on AIM will commence on or around 20 May 2020.
On Admission, the Company's issued ordinary share capital will
consist of 152,193,787 ordinary shares of 0.4p each ("Ordinary
Shares"), with one vote per Ordinary Share. The Company does not
hold any Ordinary Shares in treasury. Therefore, on Admission, the
total number of Ordinary Shares and voting rights in the Company
will be 152,193,787. With effect from Admission, this figure may be
used by shareholders in the Company as the denominator for the
calculations by which they will determine if they are required to
notify their interest in, or a change to their interest in, the
share capital of the Company under the FCA's Disclosure Guidance
and Transparency Rules.
Issue of Broker Warrants
As part of the remuneration for the Placing the Company has
agreed to issue 2,536,562 warrants to TPI. The warrants are
exercisable at the Placing price up until the second anniversary
from the date of Admission. As the Company has exhausted its
authorities to issue any further new Ordinary Shares the issue of
the warrants will be subject to the Company increasing its
authorised share capital which it has undertaken to do within the
next three months.
Information to Distributors
Solely for the purposes of the product governance requirements
contained within: (a) EU Directive 2014/65/EU on markets in
financial instruments, as amended ("MiFID II"); (b) Articles 9 and
10 of Commission Delegated Directive (EU) 2017/593 supplementing
MiFID II; and (c) local implementing measures (together, the
"Product Governance Requirements"), and disclaiming all and any
liability, whether arising in tort, contract or otherwise, which
any "manufacturer" (for the purposes of the Product Governance
Requirements) may otherwise have with respect thereto, the Placing
Shares have been subject to a product approval process, which has
determined that the Placing Shares are: (i) compatible with an end
target market of retail investors and investors who meet the
criteria of professional clients and eligible counterparties, each
as defined in MiFID II; and (ii) eligible for distribution through
all distribution channels as are permitted by MiFID II (the "Target
Market Assessment"). Notwithstanding the Target Market Assessment,
investors should note that: the price of the Placing Shares may
decline and investors could lose all or part of their investment;
Placing Shares offer no guaranteed income and no capital
protection; and an investment in Placing Shares is compatible only
with investors who do not need a guaranteed income or capital
protection, who (either alone or in conjunction with an appropriate
financial or other adviser) are capable of evaluating the merits
and risks of such an investment and who have sufficient resources
to be able to bear any losses that may result therefrom. The Target
Market Assessment is without prejudice to the requirements of any
contractual, legal or regulatory selling restrictions in relation
to the Placing. For the avoidance of doubt, the Target Market
Assessment does not constitute: (a) an assessment of suitability or
appropriateness for the purposes of MiFID II; or (b) a
recommendation to any investor or group of investors to invest in,
or purchase, or take any other action whatsoever with respect to
Placing Shares.
Enquiries:
N4 Pharma Plc Via Scott PR
Nigel Theobald, CEO
Allenby Capital Limited Tel: +44(0)20 3328 5656
James Reeve/Asha Chotai Tel: +44(0)20 3657 0050
Turner Pope Investments
(TPI) Ltd
Andrew Thacker
Scott PR Tel: +44(0)1477 539 539
Georgia Smith
About N4 Pharma
N4 Pharma is a specialist pharmaceutical company developing a
novel delivery system for cancer and vaccine treatments using its
unique silica nanoparticle delivery system called Nuvec(R).
N4 Pharma's business model is to partner with companies
developing novel antigens for cancer and vaccine treatments to use
Nuvec(R) as the delivery vehicle to get their antigen into cells to
express the protein needed for the required immunity. As these
products progress through preclinical and clinical programs, N4
Pharma will seek to receive upfront payments, milestone payments
and ultimately royalty payments once products reach the market.
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END
IOESFIFEDESSEII
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May 13, 2020 08:58 ET (12:58 GMT)
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