- Specialist drug developer Sareum said it has raised £1 million before expenses, through a subscription by a high net worth individual to progress proprietary TYK2/JAK1 programmes into clinical development.

Sareum reported that the net proceeds from the subscription will be used to progress its SDC-1801 and SDC-1802 TYK2/JAK1 inhibitor drug development programmes, with completion of preclinical studies for SDC-1801 expected in the third quarter of 2021, as well as for working capital purposes.

The subscription by the individual is for 14,285,714 new ordinary shares of 0.025p each in the capital of the company at a price of 7p per share, representing a premium of approximately 4.5% to the closing middle market price for Sareum shares on 16 July 2021.

Under the terms of the subscription, the new subscriber will also be issued one five-year warrant, exercisable at the subscription price, for every subscription share issued, which can only be exercised following the company's closing middle market share price being above 9p per ordinary share for five consecutive days.

Sareum CEO Dr Tim Mitchell said: 'We are delighted that our proprietary TYK2/JAK1 development programmes are attracting such interest and new investment. With this new subscription, the total funds raised from recent subscriptions and warrant exercises is over £3.5 million.

'These new funds will allow us both to advance SDC-1801 into clinical development in autoimmune diseases, including the immune overreaction to Covid-19 and other viral infections, and to progress the preclinical development of our second TYK2/JAK1 inhibitor SDC-1802 against cancers.'

At 2:23pm: [LON:SAR] Sareum Holdings PLC share price was 0p at 1.38p

Story provided by