Faron Pharmaceuticals has announced a proposed private placement to raise a minimum of approximately EUR 6.0 million through the issuance of newly issued treasury shares. The placement will be conducted through an accelerated book-building process and will be directed to a limited number of institutional and other investors. The funds raised will be used for the acceleration of the bexmarilimab clinical development program and manufacturing. The minimum amount to be raised is sufficient to meet the company's financial and operational covenants by 27 October 2023. The total cash and cash equivalents held by the company as of 30 September 2023 was approximately EUR 6.1 million. Carnegie Investment Bank is acting as the sole bookrunner and lead manager in the placement.

The proposed private placement is aimed at advancing the development of Faron Pharmaceuticals' pipeline of drug candidates and strengthening the company's financial position. The proceeds will be used to support the development of bexmarilimab, a macrophage reprogramming therapy for anticancer immunotherapies. The company believes that bexmarilimab has the potential to provide better patient outcomes and improve the quality of life for those suffering from relapsed/refractory AML and MDS.

The placement will be conducted through an accelerated book-building process, in which selected investors may submit bids for the placing shares. The subscription price per placing share will be determined based on the bids received. The book-building process is expected to commence immediately and end by 9:00 a.m. EEST on 27 October 2023. The final number of placing shares to be issued and the issue price will be announced after the close of the book-building process.

The company has received non-binding indications of interest from potential investors during a pre-marketing process. The placing shares are expected to be admitted to trading on Nasdaq First North Growth Market Finland and AIM in London.