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

Three top-notch Asian stocks to buy
Share tips

Three top-notch Asian stocks to buy

Professional investors Adrian Lim and Pruksa Iamthongthong, managers of the Asia Dragon Trust, pick three of their favourite Asian stocks to buy now.
23 Sep 2022
Why you should short this satellite broadband company
Trading

Why you should short this satellite broadband company

With an ill-considered business plan, satellite broadband company AST SpaceMobile is doomed to failure, says Matthew Partridge. Here's how to short th…
23 Sep 2022
Share tips of the week – 23 September
Share tips

Share tips of the week – 23 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
23 Sep 2022
Momentum investing – and why price matters more than anything else
Investment strategy

Momentum investing – and why price matters more than anything else

The recent fashion for momentum investing, with investors piling into expensive growth stocks, is nothing new, says Merryn Somerset Webb. And the dang…
21 Sep 2022

Most Popular

Beating inflation takes more luck than skill – but are we about to get lucky?
Inflation

Beating inflation takes more luck than skill – but are we about to get lucky?

The US Federal Reserve managed to beat inflation in the 1980s. But much of that was down to pure luck. Thankfully, says Merryn Somerset Webb, the Bank…
26 Sep 2022
The pick of this year's best-performing investment trusts
Investment trusts

The pick of this year's best-performing investment trusts

Market conditions haven’t been easy, but these investment trusts have delivered strong growth, says David Stevenson.
23 Sep 2022
Share tips of the week – 23 September
Share tips

Share tips of the week – 23 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
23 Sep 2022