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

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

Lab-grown meat: how “moo’s law” will drive innovation
Soft commodities

Lab-grown meat: how “moo’s law” will drive innovation

Jim Mellon and Anthony Chow, co-founders of Aim-listed Agronomics, explain why they believe that “cellular agriculture” will benefit from massive long…
16 Apr 2021
The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Lab-grown meat: the new agricultural revolution
Soft commodities

Lab-grown meat: the new agricultural revolution

Vegan alternatives are taking off, but the future of food technology lies in lab-grown meat – cultivating steaks and burgers from animal cells, says A…
16 Apr 2021