London - ValiRx Plc (AIM: VAL), a clinical stage biotechnology company, announces that it has raised GBP200,000 of gross proceeds through the issue of 200,000,000 new ordinary shares at a price of 0.10 pence ('Issue price') per share ('Placing') with new and existing investors and the appointment of ETX Capital Limited ('ETX Capital') as joint broker to the Company with immediate effect.

Use of Proceeds

The net proceeds of the Placing will be used to analyse the Phase I/II clinical trial of VAL201 to treat prostate cancer and associated metastatic conditions and continue the development of ValiRx's pre-clinical VAL301 and VAL101/GeneICE programmes towards the clinic, and for general working capital purposes.

VAL201 - As announced on 16 December 2019, the results from the clinical trial appear, in advance of full analysis, to indicate that the VAL201 compound has a clear impact on patients with prostate cancer. The compound has also shown it is very safe and has a high degree of tolerability, up to a dose that is in excess of the predicted dose and any practical therapeutic concentration.

VAL301 - The Company continues with the pre-clinical development of VAL301, focused on the treatment of endometriosis. Endometriosis represents one of the major causes of female infertility.

VAL401 - Completed its first clinical trial in Q3 2017 as an oral treatment for late-stage non-small cell lung cancer. Data from the completed Phase II clinical trial showed that palliative stage patients could expect to see improvements in symptoms, with the added benefit of improved survival prospects. ValiSeek is currently in discussions with potential partners for starting the next phase of clinical trial.

Appointment of Joint Broker

The Company is pleased to announce the appointment of ETX Capital Limited as the Company's joint broker, with immediate effect.

Issue of Warrant

Each Placing share will carry a warrant to subscribe for one further share at a price of 0.10p per share, exercisable at any time from Admission (as defined below) up to the third year anniversary of Admission. The funds were raised through ETX Capital. As part of their fee arrangement, the Company has agreed to issue to ETX Capital with a warrant over 20,000,000 ordinary shares in the Company, exercisable at any time from Admission (as defined below) at a price of 0.10 pence per share up to the third year anniversary of Admission.

Following the grant, in aggregate, of the 220,000,000 warrants over ordinary shares, the Company will have 290,076,425 warrants over ordinary shares in issue. Of the above cumulative 220,000,000 warrant granted, 140,000,000 warrants over ordinary shares will be exercisable subject to certain shareholder approvals being obtained at an upcoming general meeting of the Company.

Issue of Equity

The 200,000,000 new ordinary shares will, when issued, rank pari passu in all respects with the existing ordinary shares of the Company. Application has been made to the London Stock Exchange for the 200,000,000 new ordinary shares to be admitted to trading on AIM ('Admission'). Admission of the 200,000,000 new ordinary shares is expected to occur on or around 10 January 2020.

Dr Satu Vanikka, CEO of ValiRx Plc, commented: 'With prostate cancer reported this month in an academic study as being the most common cancer in men in the UK and with an estimated 1.3 million new cases of prostate cancer occurring worldwide last year, it is truly exciting to see VAL201 approaching the conclusion of its Phase I/II first-in-man study.'

'I look forward to regulatory approval of the trial data being speedily reached and the opportunity of potentially demonstrating that VAL201 can address this widespread and often fatal disease in men. We will keep shareholders updated on progress.'

Contact:

Tel: +44 (0) 20 3008 4416

Web: www.valirx.com

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