Mereo BioPharma Secures Up to $33 Million Funding; Shares Surge

By Jaime Llinares Taboada

Shares of Mereo BioPharma Group PLC (MPH.LN) surged on Monday after the company said that it has reached agreements to raise up to $33 million, which will be used to fund clinical trials and provide working capital.

The biopharmaceutical company said Novartis AG (NOVN.EB) will invest $5 million in a convertible loan note at a fixed price of 26.5 pence per share, with a maturity of three years. It will also receive a warrant to buy up to 1.4 million shares at the same price until Feb. 10, 2025.

Aspire Capital has bought 11.4 million shares for $3 million at a 16% discount to Mereo's closing stock price on Friday. Aspire Capital has also committed to buy up to $25 million in ordinary shares at prices based on the American depositary share market price at the time of each sale, over the next 30 months, Mereo said.

Shares at 1235 GMT were up 8 pence, or 32%, at 33 pence.

Mereo said that it continues to explore additional equity funding and partnering deals to extend its cash position.

Write to Jaime Llinares Taboada at [e-mail]; @JaimeLlinaresT

(END) Dow Jones Newswires

February 10, 2020 07:57 ET (12:57 GMT)

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