EiRx Therapeutics aims for share issue

EiRx Therapeutics will require fresh funding by January if it is to continue trading. The company, based in the Cork Airport Business Park and quoted on London’s Alternative Investment Market, says it is seeking shareholder approval to issue new shares for cash to new investors.

The share issue will require a capital reorganisation as EiRx shares are now trading below their nominal value.

“The company currently generates limited revenue and needs to raise funds to support its operations. It has been able to postpone a fundraising for longer than anticipated through careful control of expenditure and greater than anticipated grant income,” it said in a statement.

So far it has managed to get a bank overdraft of £200,000 (€285,000), which is being guaranteed by one of its existing investors.

“Even with the benefit of that facility, the company will need to raise additional funds by the end of January 2008 in order to continue trading,” the statement continued.

The company did not say how much new cash it requires, but has already received expressions of interest from potential new investors.

EiRx is working on developing a number of treatments, including one for colorectal cancer.

Shares in EiRx were trading at 11 pence yesterday, valuing the company at £3.2m. EiRx shares have lost nearly two-thirds of their value in the last year.