ImmuPharma PLC (LSE:IMM), the specialist drug discovery and development company, is pleased to announce a proposed placing of 7,100,000 existing ordinary shares of 10p each (“Ordinary Shares”) held by Lanstead Capital L.P. (“Lanstead”) to new institutional investors (the “Vendor Placing”).

The Company also announces a proposed placing of up to approximately £0.8 million (before expenses) via the issue of new Ordinary Shares (the “New Share Placing”). The proceeds of the New Share Placing will be used to provide the Company with additional working capital.

Both the Vendor Placing and the Placing are being offered by way of an accelerated bookbuild (“Bookbuild”), which will be launched immediately following this announcement. It is proposed that both the Vendor Placing and the Placing are executed at a price of 35p per share (the “Placing Price”). The Company’s joint broker Northland Capital Partners Limited will be acting as sole bookrunner in connection with the Bookbuild.

It is expected that the finalisation of the Bookbuild will commence immediately following this announcement and a further announcement will be made to confirm its completion in due course.

The Company’s Sharing Agreement with Lanstead (“Sharing Agreement”), which was announced on 5 February 2016, remains in place. Upon completion of the Vendor Placing, in recognition of the Company’s positive share price performance since the start of the Sharing Agreement, Lanstead has conditionally agreed to accelerate the next six monthly settlements to ImmuPharma under the Sharing Agreement which will result in ImmuPharma immediately receiving approximately £1.5 million, which will be applied to the Phase III clinical trial of Lupuzor™ as previously announced. The remaining settlements under the Sharing Agreement will recommence in May 2017.

Mr Robert Zimmer, the Company’s President and Chief Science Officer, has expressed an interest in subscribing for Ordinary Shares in the New Share Placing at the Placing Price.