Conversion of Loan Note, issue of warrant & equity

RNS Number : 6495Y

ValiRx PLC

18 May 2016

 

ValiRx Plc

("ValiRx" or the "Company")

Drawdown of £500,000 of Convertible Loan Notes and issue of warrants

Issue of Convertible Loan Note ("CLN")

ValiRx Plc (AIM: VAL), a life science company with a focus on cancer diagnostics and therapeutics for personalised medicine, announces that, further to the announcement made on 21 March 2016, it has issued the second Tranche CLNs of £500,000 to Bracknor Fund Limited ("Bracknor").  The Company has also received a conversion notice from Bracknor to convert £250,000 of the CLN into ordinary shares of the Company (the "Conversion").  Following the Conversion £250,000 of the loan notes remain in issue.

The Bracknor Convertible Loan Note facility provides that the Company can elect to drawdown up to a further £3.0 million of convertible loan notes on the terms set out in the announcement made 21 March 2016.

Issue of Equity

As a consequence of the Conversion, the Company has conditionally issued and allotted 3,164,557 ordinary shares at a price of 7.9p per share in the Company in consideration of the £250,000 loan note.  The 3,164,557 ordinary shares will rank pari passu with the existing ordinary shares.  Application for the 3,164,557 ordinary shares has been made to the London Stock Exchange and trading in the shares is expected to commence on or around 24 May May 2016.

Following the issue of equity above the Company's issued share capital will comprise of 52,383,487 ordinary shares.

The Company has now utilised its entire headroom to issue new ordinary shares for cash pursuant to the authorities granted to it by shareholders at the previous Annual General Meeting.  A Notice of Annual General Meeting will shortly be posted to shareholders which will seek further authority to issue new shares for cash pursuant to s570 of the Companies Act on a non-pre-emptive basis.

Issue of Warrants

Pursuant to the Bracknor agreement the Company has also agreed to issue Bracknor with a warrant over 8,333,333 ordinary shares in the Company, which will be exercised at a price of 9 pence per share at any time until the fifth anniversary of issue.  The grant of the warrant is conditional on shareholder authority to issue new shares that will be sought at the forthcoming Annual General Meeting of the Company.

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For more information, please contact:

ValiRx plc	Tel: [phone] www.valirx.com
Dr Satu Vainikka, Chief Executive	Tel: [phone]
Tarquin Edwards, Head of Communications.	Tel: [phone] [e-mail]
Mark Treharne, Corporate Development Manager	Tel: [phone] [e-mail]
Cairn Financial Advisers LLP (Nominated Adviser)	Tel: [phone]
Liam Murray / Avi Robinson
Northland Capital Partners Limited (Broker)	Tel: [phone]
Patrick Claridge / David Hignell (Corporate Finance) John Howes / Abigail Wayne (Broking)

Notes for Editors

ValiRx Plc

ValiRx Plc is a biopharmaceutical company developing novel technologies and products in oncology therapeutics and diagnostics. The product focus is in the epigenomic analysis and treatment of cancer, but the technologies can be applied to other fields as well, such as neurology and inflammatory diseases.

The Company has undertaken to develop a novel and groundbreaking class of therapeutics across a number of fields in oncology and has taken its lead compound, Val201, into Phase I/II clinical trials.   The Company listed on the Alternative Investment Market ("AIM") of the London Stock Exchange in October 2006.

The Company has a pipeline of other therapeutic drugs, which are currently progressing towards clinical trials. The product focus is in the targeted analysis and treatment of cancer, but the technologies can be applied to other fields as well, such as neurology and inflammatory diseases.

It actively manages projects within its portfolio as a trading company.  The ValiRx business model spreads the risks of life science technology development by minimising financial exposure and running a set of projects to defined commercial endpoints. This maximises returns to shareholders by adding value at the earlier stages where value increases per investment unit are the greatest.

The Company operates through the following divisional companies:

1. ValiPharma is the therapeutics division, with two embedded technologies primarily directed at the treatment of cancers.

2. ValiFinn is the biomarkers and diagnostic development division. ValiRx acquired through its ValiFinn subsidiary, the complimentary TRAC technology later in the year to strengthen the portfolio.

3. ValiSeek is a joint venture between ValiRx and Tangent Ltd to develop Val401 in lung cancer and potentially other indications.

 

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