Global investment firm Lanstead has today announced its £4.4 million investment in AIM quoted, specialist drug discovery and development company, ImmuPharma plc (AIM: IMM) as the business looks to commence its pivotal Phase III clinical trial of Lupuzor™, the Company’s lead programme for the potential breakthrough compound for Lupus, the life threatening auto immune disease.
Immupharma is a drug development company headquartered in London with research operations in France.Â The company is dedicated to the development of novel drugs, largely based on peptide therapeutics, to treat serious medical conditions such as autoimmune diseases.
Immupharma will have £0.66 million from Lanstead to deploy immediately. The remaining £3.76 million of proceeds received by ImmuPharma from Lanstead will be invested in a Sharing Agreement, which will enable ImmuPharma to receive those proceeds on a pro-rata monthly basis over 18 months.
The Sharing Agreement is subject to adjustments upwards and downwards each month depending on ImmuPharmaâ€™s share price at the time, providing ImmuPharma with the opportunity to benefit from positive future share price performance.
Commenting, Lanstead Director Nicholas Malins-Smith, said: “We believe that ImmuPharma is on the brink of a significant medical breakthrough in the treatment of autoimmune diseases, especially Lupus through the development of Lupuzor™. We believe that under the very experienced and invested management team, ImmuPharma presents a very good opportunity for Lanstead.”.
Commenting, Tim McCarthy, Chairman of ImmuPharma, said: “ImmuPharma is in an enviable position of owning a potential blockbuster drug in Lupuzor™, which has been awarded the ‘gold standard’ by the FDA of a special protocol assessment and fast track status due to its strong efficacy and safety profile. With the pivotal Phase III trial having commenced, the proceeds of the Placing and Subscription provide us with the necessary funding to complete this trial.”.
Lanstead is a global investment firm that provides funding for ongoing business objectives to listed small and mid-cap growth companies. Lanstead focuses on equity investments in companies already listed on the LSE/AIM, ASX or European exchanges and on management teams with a clear growth strategy.
Since 2007, Lanstead has completed over 40 equity placings with our accompanying sharing agreement to reward growth.
Many of the companies with Lanstead on the shareholder register have benefited substantially from the accompanying sharing agreement, receiving more cash than the original placement proceeds without having to issue any additional shares.
This announcement contains forward-looking statements that are subject to risks and uncertainties. Such statements involve known and unknown risks and important factors that may cause the actual results, performance or achievements of the investments to be materially different from the statements in this announcement.