Faron Pharmaceuticals Oy has conducted a private placement to raise EUR 4.8 million, aimed at securing the required short-term bridge financing. The company expects to have sufficient working capital into June 2024 upon receipt of these proceeds. The Placing was supported by both new and existing shareholders, including the European Innovation Council (EIC Fund) and other Finnish and international investors. The company anticipates needing an additional EUR 27 million in total to complete the phase 2 of the BEXMAB study and obtain regulatory feedback from the FDA by Q1/2025.
The Board of Directors has proposed an authorization for a larger share issuance, planned to be launched as a public offering, with the targeted size set to meet cash runway needs for 2024. The Placing of 3,200,298 newly issued treasury shares was conducted to raise EUR 4.8 million before expenses. The settlement of the Placing trades is expected to complete on or around 9 April 2024. The Placing was supported by both new and existing shareholders, including the European Innovation Council (EIC Fund) and other Finnish and international investors.
Dr. Markku Jalkanen, Chief Executive Officer of the Company, stated, "This fundraise will enable us to meet our immediate financing needs and continue our ambitious bexmarilimab development program, with a focus on delivering next milestones." The funds are part of the larger financing plan to secure cash runway into the beginning of 2025 and to complete the Phase II study and receive FDA's guidance for the pivotal study part.
The Placing covers the required short-term bridge financing to secure continued compliance with the cash covenants agreed, with the minimum cash covenant remaining at the lowered level of EUR 4.5 million until 30 April 2024. The company continues active endeavors and preparations to secure longer-term funding.