ValiRx (LON:VAL) is raising £2.03 million to take its VAL 201 candidate, targeting cancer, through its first clinical trial.
The study aims to demonstrate that the compound is safe and show the dosing level required to show a potential clinically measurable effect.
It will take the drug through to the end of Phase 1.
The company is raising the money through an issue of shares at 0.45 pence in two allocations. The placing is being managed by broker Hybridan LLP.
The first is for gross proceeds of £1.13 million, while the second is for £0.90 million, which is conditional on the approval of shareholders at a general meeting.
The firm's chief executive Dr Satu Vainikka told investors today: "We are very pleased with the high level of support received from both new and existing shareholders.
"The successful pre-clinical results for VAL201, which have demonstrated substantial and strongly encouraging effectiveness against a range of cancers, will allow management to complete the journey of VAL201 from early clinical development to the completion of 'first-in-human trials' and the end of Phase I."
Last month, the company said it had sealed a distribution deal for its SELFCheck screening products leaving it free to concentrate on developing VAL 201 and VAL 101.
The agreement with First Health Products initially runs for five years and ValiRx will receive a royalty from sales of kits that test for ailments such as stomach ulcers, chlamydia and prostate health.
