Silence Therapeutics raises five million pounds

Biotechnology firm Silence Therapeutics announced a five million pound placing to Henderson Global Investors and Ora Capital.

New shares were placed at 2.5p representing a discount of around 19% to the market price.

Funds raised will be used to expand the group's research activities in short interfering RNA or ribonucleic acid and micro RNA therapies, it said.

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The group specialises in RNA interference therapeutics or 'gene silencing', which can shut down or control faulty genes for the treatment of cancer and other diseases.

"The proceeds of the subscription will enhance the company's financial position and provide it with sufficient cash resources to fund the business well into 2014, even without generating any revenue," Silence said in a company statement.

The group also confirmed that shareholder Robert Keith has given written notice to convert his £1m loan note into 200,000,000 new ordinary shares at 0.5p per share bringing his stake holding to just over 26%.

Director of Corporate Strategy Ali Mortazavi said: "We are delighted to welcome Henderson as a significant shareholder in Silence. Along with further support from our existing shareholders, the company is now ideally placed to take advantage of the new wave in RNAi therapeutics."

Shares in Silence soared 12.5% to 3.60p at 13:30.

CJ