Allergy Therapeutics has strengthened its finances after raising £55 million from the exercise of 1.38 billion lender warrants, using the proceeds to fully repay its shareholder loan and clear all outstanding debt.
The West Sussex-based MedTech, which develops allergy vaccines and immunotherapy treatments, said the move leaves it with a stronger balance sheet and more room to grow as it prepares for key product milestones.
The company has also agreed a new £50m unsecured loan facility with long-term backers SkyGem Acquisition Limited and Southern Fox Investments Limited, providing financial flexibility until 2030.
The new facility replaces the previous loan agreement and can be drawn upon if required, offering a safety net for future expansion.
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“This transaction leaves Allergy Therapeutics with a strengthened balance sheet and renewed financial flexibility as we enter an important period for the company,” said chief executive Manuel Llobet.
“With the continued backing of our core investors, we can focus on near-term milestones such as the upcoming regulatory decision on Grass MATA MPL in Germany and ongoing progress with our peanut allergy vaccine programme.
“These are key opportunities to demonstrate the strength of our science and deliver long-term value for shareholders.”
As part of the deal, 1.38bn new shares will be issued to the lenders, who chose to exercise their existing warrants.
These shares are expected to begin trading on AIM on the 30th October, taking the company’s total shares in issue to just over 6.14bn.
The company said the agreement reflects continued support from its core investors and provides the flexibility needed to progress its allergy treatment portfolio, which includes vaccines aimed at seasonal and food allergies.
It currently has a market cap of £393m and its shares are trading at 8.24p.