Scancell announces a further £30m investment by funds managed by Redmile, LLC
Scancell Holdings plc, one of our longstanding corporate clients, has announced that it has raised £30 million (before expenses) at 13p in the form of an issue of shares and convertible notes from funds managed by Redmile Group, LLC, the US based specialist healthcare and life sciences investment firm that invested £10m in the company's £15m funding round in August. Scancell is also conducting a £3m open offer to shareholders at 13p with a 1:27 entitlement.
The additional funding will be used "to extend the utility of the Company's ImmunoBody®, Moditope®, and AvidiMab™/tumour-associated glycans ("TaG") antibody products and platforms and to accelerate and broaden its development pipeline of new potential novel therapies and increase the funding available for the Company's COVID-19 vaccine."
Scancell's CEO Cliff Holloway commented, "The board believes that broadening and deepening the Company's development pipeline will add significant value to the business and the proceeds of the Capital Raise will be transformative in our ability to achieve these goals."
The two investments made by Redmile have effectively removed the financing risk that has weighed on Scancell's share price in recent years. The financial support and company development experience of Redmile will enable the Company to build its structure in critical areas such as clinical operations and business development.
Redmile's investment and the open offer to shareholders are subject to the passing of a special resolution at a general meeting that will be held on 29th October. A circular has been sent to shareholders and is available on the Company's website.