Solvonis Therapeutics (LSE:SVNS) has conditionally secured £1.3 million through a share placing as the biopharmaceutical company looks to fund further development of its central nervous system pipeline. The fundraising also introduces a new UK institutional investor to the shareholder register, while Turner Pope Investments has been appointed as the company’s corporate broker.
The placing comprises 1,083,333,333 new shares issued at a discount. Admission of the placing shares and associated fee shares to trading on the Main Market is expected on or around 28 August, after which Solvonis will have an enlarged issued share capital of approximately 7.9 billion shares.
Proceeds from the fundraising are earmarked for several clinical and development milestones. These include the potential expansion of the Phase 3 trial of SVN-001, Solvonis’ treatment candidate for alcohol use disorder, to selected clinical sites in the European Union.
Funding will also support IND-enabling activities and preparations for a Phase 2b programme in the United States for SVN-002, the company’s oral esketamine candidate. In addition, Solvonis plans to advance programme development for SVN-015, its NIDA-backed candidate targeting stimulant use disorders.
Part of the proceeds will be allocated to general working capital requirements. The fundraising is intended to provide additional financial resources as Solvonis progresses its clinical programmes while also strengthening its engagement with UK institutional investors.
The company continues to face financial challenges, including recurring losses, declining revenue in recent annual periods and ongoing cash consumption. These pressures are partly mitigated by relatively low levels of debt. From a technical perspective, the shares remain below major moving averages, while conventional valuation measures offer limited support given the negative price-to-earnings ratio and absence of dividend yield data.
About Solvonis Therapeutics
Solvonis Therapeutics plc is a late clinical-stage biopharmaceutical company developing novel small-molecule therapies for central nervous system conditions with significant unmet medical needs, with a particular emphasis on substance use disorders.
Its principal programmes include SVN-001 for severe alcohol use disorder and SVN-002, an oral esketamine candidate targeting moderate-to-severe alcohol use disorder in the United States. The company is also developing SVN-015, a discovery-stage programme focused on potential treatments for stimulant use disorders.
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