It proposes a conditional placing of placing shares with existing and new institutional investors and subscription of subscription shares by certain directors.
In addition, in order to provide eligible shareholders with an opportunity to participate in the fundraise at the issue price, subject to the successful closing of the placing and subscription, the company proposes to make an open offer to all eligible shareholders to raise additional gross proceeds of up to £1m.
The net proceeds of the placing and subscription will be used to strengthen the balance sheet as near term and other licensing discussions and strategic collaborations progress, and support working capital during the expansion of the group’s pipeline portfolio.
Chief executive Clive Dix said: “C4XD’s combination of state-of-the-art proprietary technologies, highly-experienced scientific team, and industry experience puts the company in a strong position to fulfil the pharmaceutical industry’s demand for high-quality early-stage drug candidates.
“As momentum continues to build across our key out-licensing projects, we remain confident in our business strategy as partner discussions to date have confirmed commercial interest for our NRF-2 programme for Sickle Cell Disease, alongside our already out-licensed Orexin-1 programme progressing to clinical studies with Indivior.
“We are excited by our future prospects as we continue to drive value from revenue-generating deals and building a sustainable drug discovery company.”