Subscription and Placing to raise £1.1 million; Sharing Agreement; to progress product portfolio. Broker Option to raise up to £1.3m

Related Party Transactions

ImmuPharma PLC (LSE AIM: IMM), the specialist drug discovery and development company, is pleased to announce a subscription and a placing to raise c£1.1 million (the “Subscription” and “Placing”) through the issue of 21,818,182 new ordinary shares of 1 pence each in the Company (“Ordinary Shares”) at a price of 5 pence per Ordinary Share (“Issue Price”) utilising existing authorities to allot shares. The Company has also entered into a sharing agreement (“Sharing Agreement”) with finance provider and current 9.85% shareholder, Lanstead Capital Investors L.P. (“Lanstead”).

Highlights

• Subscription for 20,000,000 new Ordinary Shares (the “Lanstead Subscription Shares”) by Lanstead at an issue price of 5 pence per Subscription Share to raise £1.0 million (the “Lanstead Subscription”).

• Placing of 1,818,182 new Ordinary Shares (“Placing Shares”) to raise £0.09 million (the “Placing”).

• A Broker Option to raise up to a maximum additional £1.3 million. The Broker Option has been granted in favour of Stanford Capital Partners LLP (“SCP”) who have acted as brokers in respect of the Placing. The Broker Option will allow qualifying investors to invest in Ordinary Shares (“Broker Option Shares”) on the same terms as the Placing. Further details of the Broker Option are set out below.

• Certain of the Company’s Directors (“Directors”) have indicated an intention to place orders for Broker Option Shares with an aggregate value of up to £100,000 via the Broker Option.

• The Issue Price of 5 pence represents a 21.38 per cent. discount to the closing mid-market price (of 6.36p pence) of the Ordinary Shares on 2 August 2022, the latest business date prior to the announcement of the Subscription and Placing.

• The £1 million gross proceeds of the Lanstead Subscription will be pledged by the Company pursuant to a Sharing Agreement with Lanstead (“Sharing Agreement”), and together with the Lanstead Subscription, “the Lanstead Agreements”). The Sharing Agreement, details of which are set out below, entitles the Company to receive back those proceeds on a pro rata monthly basis over a period of 24 months, subject to adjustment upwards or downwards each month depending on the Company’s share price at the time. The monthly settlement amounts for the Sharing Agreement are structured to commence one month (or earlier by agreement with Lanstead) following Admission. The Sharing Agreement provides the opportunity for the Company to benefit from positive future share price performance.

• The proceeds of the Subscription, the Placing, the Broker Option and Sharing Agreement, will be used primarily to fund:
– Investment into the Company’s R&D pipeline;
– General working capital; and
– Cash expenses associated with the Subscription, Placing and Sharing Agreement of c.£0.1m.

Commenting on the fundraising, Tim McCarthy, Chairman and CEO of ImmuPharma, said: “We are entering a transitional period for ImmuPharma, as we await final guidance from the FDA, prior to commencing the new international Phase 3 clinical trial of Lupuzor™ with our partner, Avion Pharmaceuticals. In addition to this, as a team, we remain committed to reaching other key milestones over the next period. This includes concluding the licensing of Lupuzor™ in key territories outside of the US; progressing our further late-stage P140 asset, CIDP, where we are now gaining interest from potential partners to expedite this program and moving forward our earlier stage assets including BioAMB, within our anti-infective portfolio. I would like to thank Lanstead, our largest shareholder, for their involvement in this fundraising, which will allow us to further invest in our product portfolio. Moving forward we remain focused on creating a robust and successful Company that, with a diversity of assets, will build future value for our shareholders.”

Investor Meet Company Presentation 12.00pm (BST) Thursday 4 August 2022

ImmuPharma confirms that it will give a live investor presentation via the Investor Meet Company platform on 4 August 2022 at 12:00pm BST.

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation.

Investors can sign up to Investor Meet Company for free and add to meet ImmuPharma via:
www.investormeetcompany.com/immupharma-plc/register-investor

Investors who already follow ImmuPharma through the Investor Meet Company platform, will automatically be invited.

For further information on the Lanstead Subscription and to download full announcement click here