Mereo BioPharma Secures Up to $33 Million Funding; Shares Surge
11 February 2020 - 12:12AM
Dow Jones News
By Jaime Llinares Taboada
Shares of Mereo BioPharma Group PLC (MPH.LN) surged on Monday
after the company said that it has reached agreements to raise up
to $33 million, which will be used to fund clinical trials and
provide working capital.
The biopharmaceutical company said Novartis AG (NOVN.EB) will
invest $5 million in a convertible loan note at a fixed price of
26.5 pence per share, with a maturity of three years. It will also
receive a warrant to buy up to 1.4 million shares at the same price
until Feb. 10, 2025.
Aspire Capital has bought 11.4 million shares for $3 million at
a 16% discount to Mereo's closing stock price on Friday. Aspire
Capital has also committed to buy up to $25 million in ordinary
shares at prices based on the American depositary share market
price at the time of each sale, over the next 30 months, Mereo
said.
Shares at 1235 GMT were up 8 pence, or 32%, at 33 pence.
Mereo said that it continues to explore additional equity
funding and partnering deals to extend its cash position.
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com;
@JaimeLlinaresT
(END) Dow Jones Newswires
February 10, 2020 07:57 ET (12:57 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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