Silence Therapeutics places 9.5m shares and plans share consolidation

Silence Therapeutics, a biotechnology company, has placed 9.5m new ordinary shares at 200p each and announced plans for a share consolidation.

Silence Therapeutics, a biotechnology company, has placed 9.5m new ordinary shares at 200p each and announced plans for a share consolidation.

The placing raised net funds of £18.7m, which will be used to support the development of the RNAi platform, to broaden its skills from its pre-clinical research to include clinical and commercial expertise and to partially fund a research programme in pancreatic cancer.

It said these broader skills will be used to add a further indication in its Atu027 product and to bring drugs targeting non-cancer indications into the clinic.

The company also intends to consolidate the exisitng ordinary shares on the basis of one consolidated share for every 50 existing shares held, in order to improve the marketability of the shares. Where existing shares have a value of 0.1p each, the new shares will have a value of 5.0p each.

Ali Mortazavi, Director of Corporate Strategy, said: "This capital raise is a significant milestone for Silence Therapeutics and a strong vote of confidence by existing and new institutional shareholders in the company's technologies."

The company added that whilst it has "sufficient cash resources for its near term needs and retains discretion over a substantial part of its development and other expenditure", the board believes that the group "requires and would benefit from additional finance to enable it to accelerate its product strategy".

The share price fell 3.95% to 4.25p by 09:55.

NR

Recommended

Share tips of the week – 24 June
Share tips

Share tips of the week – 24 June

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
24 Jun 2022
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves looks at the FTSE 100’s top yielding stocks for income investors to consider.
22 Jun 2022
The ten highest dividend yields in the FTSE 250
Share tips

The ten highest dividend yields in the FTSE 250

The average FTSE 250 dividend yield is around 2.4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income inves…
22 Jun 2022
Defensive income plus growth potential? This stock ticks all the boxes
Share tips

Defensive income plus growth potential? This stock ticks all the boxes

Telecom Plus has survived the energy crisis that has driven so many of its competitors under, and has emerged bigger and stronger than ever. One to c…
21 Jun 2022

Most Popular

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves looks at the FTSE 100’s top yielding stocks for income investors to consider.
22 Jun 2022
Get ready for the coming oil glut
Oil

Get ready for the coming oil glut

Investors are assuming that energy prices will stay high. History suggests the opposite, says Max King
20 Jun 2022
The ten investment trusts with the highest dividend yields
Investment trusts

The ten investment trusts with the highest dividend yields

Investment trusts are one of the best ways to participate in the stockmarket, and the way they are structured means they can maintain their dividends …
23 Jun 2022