Redx Pharma plc Placing to raise c.£25.5 million and Open Offer to raise up to £2.2 million and Conversion of loan notes

Alderley Park, 2 December 2020 - Redx (AIM: REDX), the drug discovery and development company focused on cancer and fibrosis, announces today that it has conditionally raised c.£25.5 million (before expenses) by way of a placing of 45,603,575 new Ordinary Shares (the "Placing Shares") with both new institutional investors and existing shareholders (the "Placing") and up to a further approximately £2.2 million by way of an Open Offer (the "Open Offer", together with the Placing, the "Transaction"). The Transaction, which is subject to certain conditions, will be effected at a price of 56 pence per Ordinary Share (the "Issue Price"), representing a discount of approximately 2.6 per cent to the Closing Price of 57.5 pence per Ordinary Share on 1 December 2020 (being the last practicable date prior to the date of this announcement). The net proceeds of the Transaction will allow the Group to continue to progress its pipeline, as detailed further below.

WG Partners are acting as sole bookrunner (the "Bookrunner") in connection with the Placing and the Placing Agreement has been entered into today between the Company and WG Partners in connection with the Placing.

In order to provide Shareholders who do not take part in the Placing with an opportunity to participate in the proposed issue of New Shares, the Company is providing Qualifying Shareholders with the opportunity to subscribe for up to 3,904,948 Open Offer Shares, to raise up to a further approximately £2.2 million (before expenses), on the basis of 1 Open Offer Share for every 50 Ordinary Shares held on the Record Date, at the Issue Price. By setting the Open Offer ratio at this level, the Board has provided sufficient Basic Entitlements for each Qualifying Shareholder to enable them to maintain their existing percentage holding of Existing Ordinary Shares, if they wish to do so, taking into account both the issue of the Placing Shares (but not the issue of any Open Offer Shares or Conversion Shares) and the stated intention of Redmile and Sofinnova not to take up their Open Offer Entitlements. In addition, Shareholders subscribing for their full entitlement under the Open Offer may also request additional Open Offer Shares through the Excess Application Facility.

Iain Ross, Chairman of Redx, commented: "We are delighted to have conditionally raised c.£25.5 million, which has strengthened our financial position and means we can continue to drive forward with two promising clinical programmes and our preclinical research at pace. We are particularly pleased with the continued strong support from our existing investors, notably Redmile and Sofinnova, as well as welcoming new investors including Polar Capital."

Commenting on recent progress and momentum in a strong 2020 for Redx, Lisa Anson, Chief Executive Officer of Redx added: "Redx has made strong progress over the last six months in particular, executing on two key collaboration agreements with world leading pharmaceutical companies, AstraZeneca and Jazz Pharmaceuticals. We are pleased to see support for Redx's strategy and our exciting pipeline of novel drugs, which have the potential to transform the treatment of cancer and fibrosis. We remain confident in our lead oncology asset, RXC004, and look forward to announcing results from the Phase 1 study, expected in H1 2021. Our development compound in fibrosis, RXC007, also remains on track, and we expect it to enter Phase 1 clinical development in H1 2021."

Read the full press release here