Shield Therapeutics secures $10m investment, announces RetailBook offer

(Sharecast News) - Shield Therapeutics announced on Friday that it has secured a $10m investment from its largest shareholder, AOP Health International Management, through a subscription of 256.4 million new shares at 3p per share. The AIM-traded firm said the funds would support the company's commercialisation of 'ACCRUFeR', its oral iron therapy, as it worked toward becoming cash flow positive by the end of 2025.

It said the subscription, conditional on shareholder approval at a general meeting on Christmas Eve, would result in AOP becoming Shield's majority shareholder, with a stake of at least 53% of the enlarged share capital.

Shield was also conducting a RetailBook Offer of up to 33.3 million shares to raise an additional £1m, contingent on the subscription proceeding.

The board said the fundraising would address the need for additional capital, highlighted by a forecast cash runway only into the second quarter of 2025.

Shield said its financial strategy included reducing operating costs and building on its growing US revenue, which reached $7.2m in the third quarter of 2024 - a significant increase from the first quarter of 2023.

To comply with the Takeover Code, Shield said it was seeking shareholder approval for a waiver of Rule 9, which would otherwise require AOP to make a mandatory offer for the company due to its increased shareholding.

Independent directors, backed by advice from Peel Hunt, were recommending shareholders approve the waiver and other resolutions to ensure the subscription proceeded.

At 1425 GMT, shares in Shield Therapeutics were up 2.88% at 2.93p.

Reporting by Josh White for Sharecast.com.