EiRx funding package sufficient

THE funding package put in place by EiRx Therapeutics is sufficient and will allow it to advance its drug development programme over the next 12 months, according to the Cork-based company.

The funding package comprises a placing of shares for cash, the issue of convertible loan stock and an increase in the secured bank facility.

The company said it has placed a total of 4 billion shares at a price of 0.015 pence per share to raise £600,000 (€7,933). Of this amount, £170,125 is as a debt for equity swap. Subscribers under the placing will be granted one warrant for every three shares subscribed, subject to shareholder consent. Each warrant is convertible at a price of 0.015 pence per share.

EiRx added that Billam AG has agreed to make available a further £300,000 of funding from September 2008 through zero coupon non-redeemable convertible loan stock, convertible at the current placing price of 0.015p per share. Billam has also agreed to guarantee additional secured bank borrowings of up to £350,000 to replace the existing facility of £200,000 as announced on November 8, 2007, EiRx said.