Faron Pharmaceuticals, a drug development company, has successfully completed its share issue. The offering was oversubscribed and raised approximately EUR 30.7 million for the company. Over 3,000 subscribers participated in the share issue.
Faron has allocated 7,872,794 shares to private investors in the public offering and 16,676,648 shares will go to participants in the institutional offering. The subscription price for the shares was set at EUR 1.00 per share. In total, 30,709,056 new shares were issued, accounting for nearly 30 percent of the company’s outstanding shares and votes post-issue.
Timo Syrjälä of Acme Investments was the principal owner and issued 3,695,449 shares through his company and received an additional 66,667 free shares in the private placement. Faron believes that the raised funds of 27 million euros will provide the necessary resources for its core business and help achieve key goals by 2024.
Some of the funds will be used to convert the company’s capital loans into company shares while others will be allocated towards completing Phase II trial of BEXMAB drug and preparing for Phase III trial. Additionally Faron plans to seek guidance from FDA on future drug development stages and explore licensing or collaboration opportunities for bexmarilimab.
The successful completion of this share issue marks a significant milestone in Faron’s journey towards achieving its vision of bringing innovative drugs to market to treat rare diseases with high unmet medical needs.
In conclusion, Faron Pharmaceuticals’ successful completion of its share issue is a testament to its commitment to advancing drug development and bringing innovative treatments to patients suffering from rare diseases with high unmet medical needs.