Leeds-based pharmaceutical company 4D Pharma is set to raise about $24m (£17.3m) from UK and US investors.
The listed company has entered into securities purchase agreements with institutional and accredited investors to raise the funds in a private placement.
Company chief executive Duncan Peyton and chief scientific officer Alex Stevenson also intend to subscribe for, in aggregate, $2m (£1.44m).
Peyton said: “This fundraising involves a broad range of institutional investors, strengthening our international investor base. Combined with the imminent merger and listing on NASDAQ expected to occur on 22 March 2021, 4D pharma is in a strong position to continue the development of the company and its pipeline of Live Biotherapeutics.
“The additional funds that these combined activities deliver will enable 4D pharma to continue the rapid pace of development on our pipeline of Live Biotherapeutics, including lead oncology program, MRx0518 targeting a range of cancers, as well as other therapeutic areas such as neurological conditions.
“We have a robust line up of milestones set for 2021 and with both our new US institutional support and upcoming NASDAQ listing, we look forward to providing updates from our novel, single-strain LBP programs to our expanded global audience.”
The fundraising is conditional on the approval of 4D shareholders at the general meeting later today (18 March 2021).
Chardan and Ladenburg Thalmann acted as co-placement agents to 4D Pharma in connection with the fundraising.