4basebio (AIM:4BB) has announced plans to raise at least £15 million through a placing - plus a subscription and retail offer - pricing new shares at an 8.4% discount as it looks to fund commercial growth and extend its cash runway to the second half of 2028.
The AIM-listed company, which develops enzymatically manufactured synthetic DNA for gene therapies, mRNA production and DNA vaccines, is issuing shares at 515p, versus Wednesday's closing price of 562.5p.
4basebio said the proceeds will support commercial development toward a stated target of more than £10 million in annual revenue, backed by a pipeline it puts at more than £80 million.
The company also plans to use the funds to complete the fit-out of its Q-Arc facility to expand research-use-only manufacturing capacity, to fund research aimed at cutting turnaround times and reducing cost of goods sold to above 75%, and to support working capital.
It noted that the raise comprises a placing of 2.66 million new shares to institutional investors, a subscription of 1.03 million shares by directors and existing shareholders, and a retail offer of up to 97,087 shares via the Bookbuild Platform, seeking up to an additional £0.5 million.
4basebio's chief executive, Dr Amy Walker, told investors that the company's operational progress since its 2024 capital raise "has been significant," pointing to growth in its client base and pipeline and the expansion of its GMP-grade clinical trial services.
"The capital raise announced today will provide the Company important resources to expand services and offerings to meet the growing demands of the genomic medicines landscape," she said.
The company highlighted that its interim results showed six-fold growth in its qualified pipeline during the first half of the year, which it has described as a period of strong commercial momentum.
That momentum has recently translated into clinical-supply agreements, including a multi-year deal signed in May to supply GMP-grade opDNA starting material for a Phase II cancer immunotherapy trial, expected to generate seven-figure revenue over 12 months, and a September arrangement to supply opDNA for a Phase I cell therapy trial run by an existing pharmaceutical client, alongside CDMO TriLink BioTechnologies.
Existing shareholders are backing the raise heavily. M&G Investment Management, which holds 12.62% of 4basebio, intends to participate in the placing to maintain its stake, while Elevage Medical Technologies Holdings, which holds 17.16%, plans to subscribe for approximately £1.3 million.
Directors Amy Walker, Heikki Lanckriet, Hansjörg Plaggemars and Richard Bungay intend to subscribe for 54,366 shares, together worth around £0.3 million.
2Invest, part of the Deutsche Balaton group that holds 32.95% of 4basebio's existing share capital, has agreed to subscribe for 194,174 shares in cash for around £1 million and a further 776,699 shares worth approximately £4 million, the latter satisfied by setting off principal and accrued interest against 2Invest's existing €25 million shareholder loan to the company.
That set-off reduces the loan's outstanding balance to a principal sum of €21.08 million and extends its maturity by two years to 31 October 2030.
The capital raise requires shareholder approval at a general meeting expected around 6 November, with admission of the first tranche of shares to AIM trading expected on 9 November and the remaining shares settling on or before 10 November.
