(Sharecast News) - Mereo BioPharma Group has entered into a securities purchase agreement with a new US-based institutional healthcare investor, it announced on Wednesday.
The AIM-traded firm said that under the terms of the agreement, the institutional investor had agreed to make an investment of $3m to purchase 12,252,715 of the company's ordinary shares, equivalent to 2,450,543 American depositary shares, at a price equivalent to 18.8p each, which represents a 20% discount over Mereo's closing share price of 23.5p on 18 February.
"Mereo intends to use the net proceeds from the private offering for general corporate purposes, including clinical trial activity and working capital," the board said in its statement.
"There are no warrants, derivatives, or other share classes associated with the agreement.
"Further, there are no restrictions on future financings and there are no financial covenants, participation rights, rights of first refusal, or penalties in the agreement."
At 1601 GMT, shares in Mereo BioPharma Group were up 6.3% in London at 24.98p.
6 Jun 2016 07:43