Solvonis Therapeutics plans £2 million equity fundraising

Published 15/05/2025, 17:00
Solvonis Therapeutics plans £2 million equity fundraising

LONDON - Solvonis Therapeutics plc (LSE:SVNS), a biotechnology firm specializing in the development of mental health disorder treatments, has announced its intention to raise a minimum of approximately £2 million through the issuance of new Ordinary Shares. This equity fundraising effort is part of the company’s strategy to satisfy the financial requirements of its proposed acquisition of Awakn Life Sciences Corp., a transaction that was initially disclosed on February 22, 2025.

The fundraising process, which is being conducted through an accelerated bookbuild by joint brokers Allenby Capital Limited and Singer Capital Markets Securities Limited, commenced immediately following the announcement. The bookbuild will determine the final number of shares to be issued, with the results expected to be announced shortly after its conclusion.

The proceeds from the fundraising, after covering expenses related to both the fundraising and the acquisition, will ensure the combined entity has sufficient working capital. The issue price for the new shares has been set at 0.13 pence per share.

Completion of the fundraising is contingent upon several conditions, including the execution of a placing agreement, the publication of a prospectus approved by the Financial Conduct Authority, and the successful admission of the new shares to trading on the London Stock Exchange (LON:LSEG)’s Main Market.

The proposed acquisition of Awakn values the company at approximately £4.98 million and involves the issuance of over 2 billion new Solvonis shares as consideration. This strategic move aims to enhance Solvonis’ portfolio with Awakn’s research and development programs, which include treatments for severe alcohol use disorder and Post-Traumatic Stress Disorder.

The transaction is expected to be finalized around May 27, 2025, with the new shares anticipated to begin trading on the same date. Participation in the fundraising is limited to certain directors of Solvonis and other institutional and accredited investors, and is not open to the general public.

This article is based on a press release statement provided by Solvonis Therapeutics plc.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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