Evgen Pharma PLC (LON:EVG) said it has raised £10mln through a share placing that it said will be used to accelerate future clinical and current pre-clinical work across a range of projects.

The AIM-listed firm said it had raised the funds through the placing of 125mln new shares at a price of 8p each, a 14.4% discount to its closing price on Monday, adding that it will also provide an opportunity for qualifying shareholders to subscribe for up to 12.49mln new shares at the placing price to raise an additional £1mln.

WATCH: Evgen Pharma updates on the ‘STAR’ trial for Covid-19, Glioma research and key breast cancer drug

Evgen said the proceeds of the fundraising will be used to fund further preclinical work for metastatic breast cancer (mBC), glioma and a further cancer indication yet to be announced, as well as potentially providing funds for a clinical trial in glioma patients.

The firm said the cash is also intended to be used to complete the formulation and scale up manufacturing of its SFX-01 treatment for metastatic breast cancer, as well as complete all preparatory work to file an Investigational New Drug application in the US for the drug.

Additionally, the money will also be put towards funding the company’s operations to mid-2023, which will include the hiring of a chief business officer and a chief scientific and medical officer.

Meanwhile, Evgen said it is making “good progress” with patient recruitment for a Phase II/III randomised, placebo-controlled STAR-COVID 19 trial, which so far has recruited 89 patients.

“This heavily oversubscribed fundraising is transformative for us and allows us to accelerate both our future clinical and current pre-clinical work dramatically, together with expanding our senior management team to support our growth”, Evgen chief executive Huw Jones said in a statement.

“We are very pleased with recent progress of our work on SFX-01 and are most grateful for the support shown in this placing by existing shareholders. The Placing also brings a number of new, high quality shareholders to our register and we offer a warm welcome to them as we accelerate our progress in a range of cancers and acute respiratory distress”, he added.

Shares in Evgen were 1.1% higher at 9.5p in late-afternoon trading on Tuesday.

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