TheraCryf (AIM:TCF) has agreed to raise approximately £1.05 million before expenses through a placing and subscription at 0.18p per new share.
The AIM-listed biotech develops treatments for addiction and other neuropsychiatric disorders, with its lead asset an orexin-1 antagonist known as Ox-1 targeting addiction. The issue price sits at a 5% discount to the 0.19p closing price on 19 August, the last trading day before the announcement.
The placing covers 416.39 million shares raising approximately £0.75 million, with a further £0.3 million from a subscription for 166.94 million shares. Together, the placing shares represent 19.4% of the enlarged issued share capital.
Directors are also participating, with chief executive Dr Huw Jones and chairman Dr Alastair Smith together subscribing for 28.06 million shares.
Proceeds will fund completion of the clinic-enabling programme for Ox-1, including toxicology data collation, an application to Australian regulators, and development of bioanalytical methods needed for a first-in-human study.
Cash runway extends to the end of the first quarter of 2027.
"The funds raised will enable us to complete the key activities required to commence our Phase 1 programme," said Jones, adding that the company has received "incoming expressions of interest" on its neuropsychiatry assets.
The raise requires shareholder approval, alongside a share subdivision needed because the issue price falls below nominal value, at a general meeting on 7 September, with admission targeted for 9 September.
News Intelligence what this means for the company
TheraCryf has raised £1.05m at a 5% discount to recent close, extending cash runway to Q1 2027 and funding completion of clinic-enabling work on its lead orexin-1 antagonist Ox-1—toxicology, Australian regulatory application, and bioanalytical methods needed to start a Phase 1 study. The raise is modest relative to the company's pre-revenue stage: at £1.05m gross, it funds a defined set of preclinical milestones rather than clinical operations, and the 19.4% dilution reflects the capital constraints of an early-stage biotech with 9 employees.
The raise de-risks the path to first-in-human dosing and signals director confidence through participation by the CEO and chairman, but does not alter the fundamental risk profile: Ox-1 remains preclinical, and the company has disclosed incoming interest in its neuropsychiatry assets without detail on partnership or licensing prospects. Runway to Q1 2027 is tight for a biotech moving into Phase 1.
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