Scancell Holdings has raised its UK placement from £9 million to £13 million, following significant oversubscription. The company will issue 144.4 million new shares, strengthening its balance sheet until the third quarter of 2027.
Scancell Holdings, the Oxford-based pharmaceutical company focused on cancer immunotherapies, has increased its UK placement to £13.0 million, up from the initially planned £9.0 million. The decision comes in response to significant oversubscription from investors, the company announced on Thursday.
The firm will issue 144.4 million new shares, representing approximately 13.9% of its current share capital. The additional funds will allow Scancell to strengthen its balance sheet and increase its liquidity until the third quarter of 2027, not accounting for the impact of its plans to go public in the United States.
Additionally, the company is keeping a retail offer open to raise up to £2.3 million more, which will remain available until Friday. This offer complements the institutional placement and reflects interest from both large investors and individual shareholders.
In parallel, Scancell has agreed to merge with a special purpose acquisition company (SPAC) listed on Nasdaq. The transaction, also announced on Thursday, will see the combined company listed on the Nasdaq in New York, a strategic step to access the US capital markets.
The news comes at a crucial time for the biotech firm, which develops oncology immunotherapies. The capital injection provides a financial cushion to advance its research and development programs without the immediate pressure of seeking new funding.
For current investors, the capital increase represents a 13.9% dilution of their holdings, although the strong demand suggests confidence in the company's business plan. Those interested in the retail offer can still subscribe for shares until Friday, the company indicated.
The merger with the US SPAC is a move aimed at giving Scancell greater visibility in the global market and facilitating access to institutional investors in the United States, an ecosystem traditionally more receptive to biotechs. The company has not disclosed the name of the SPAC or the economic terms of the deal.
Scancell has emphasized that the funds raised, combined with those it expects to obtain from the US IPO, will allow it to finance its operations well into 2027. The company is confident that this financial horizon will provide room to achieve significant clinical milestones.
The market has received the news with optimism. Scancell's shares are traded on the AIM market in London, and the capital increase has been seen as a backing of its strategy. The company has expressed satisfaction with the reception of the placement.
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