REG - Sareum Holdings PLC - Subscription to raise £1.63m to progress SDC-1801

Sareum HoldingsAnnouncement

17/12/2021 07:00

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RNS Number : 9685V  Sareum Holdings PLC  17 December 2021

 

Sareum Holdings plc

("Sareum" or the "Company")

Subscription to raise approximately £1.63 million to progress proprietary
TYK2/JAK1 programme

SDC-1801 through Phase 1a clinical development

Cambridge, UK, 17 December 2021 - Sareum Holdings plc (AIM: SAR), the
specialist small molecule drug development company, announces that it has
raised approximately £1.63 million, before expenses, through a subscription
by new and existing high net worth individuals (the "Subscribers") for
32,636,311 new ordinary shares of 0.025p each in the capital of the Company
("Ordinary Shares") (the "Subscription Shares") at a price of 5.0p per share
(the "Subscription Price") (the "Subscription").

The Subscription Price represents a discount of approximately 3.8 per cent to
the closing middle market price for Sareum shares on 16 December 2021.

The net proceeds from the Subscription will enable the Company to advance its
two proprietary TYK2/JAK1 inhibitor programmes: SDC-1801, which is targeting
autoimmune diseases, including the potentially life-threatening
hyper-inflammatory response (the "cytokine storm") that affects some Covid-19
patients, through Phase 1a clinical development; and SDC-1802, which is
targeting cancers, through preclinical development; as well as for working
capital purposes.

As noted in its Final Results Statement of 25 October 2021, the Company is
targeting the application for a Clinical Trials Authorisation for SDC-1801 in
mid-2022, subject to successful progress. Clinical trial plans, including
priority autoimmune indications and potential Covid-19 application, will also
be developed in parallel. Preclinical development of SDC-1802 will be
accelerated and is expected to complete in 2023, again subject to successful
progress.

Application will be made for the 32,636,311 Subscription Shares, which will
rank pari passu with the Company's existing Ordinary Shares, to be admitted to
trading on the AIM market of the London Stock Exchange ("AIM") ("Admission").
It is anticipated that Admission will become effective at 8.00 am on 23
December 2021. The Subscription is subject to normal conditions including,
inter alia, Admission.

Total Voting Rights

For the purpose of the Disclosure Guidance and Transparency Rules, following
the above issue of equity, the issued share capital of the Company will
comprise 3,403,470,791 Ordinary Shares. The above figure may be used by
shareholders as the denominator for the calculations by which they will
determine if they are required to notify their interest in, or a change to
their interest in, the Company, under the Disclosure Guidance and Transparency
Rules.

Dr Tim Mitchell, CEO of Sareum Holdings plc, said: "This new subscription
brings the funds raised by Sareum this year to over £6 million, reflecting
the strong and continuing interest in our proprietary TYK2/JAK1 development
programmes. Our significantly strengthened financial position will now enable
us to take SDC-1801 through Phase 1a clinical development to assess its safety
in healthy human volunteers. We also have the resources to complete the
preclinical development for SDC-1802 for cancer. 2021 has been a significant
year for Sareum and we look forward to reporting progress with our TYK2/JAK1
inhibitor development programmes in 2022."

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018.

For further information, please contact:

 Sareum Holdings plc

 Tim Mitchell, CEO                          012 2349 7700

 Strand Hanson Limited (Nominated Adviser)

 James Dance / James Bellman                020 7409 3494

 Peel Hunt LLP (Joint Corporate Broker)

 James Steel                                020 7418 8900

 Hybridan LLP (Joint Corporate Broker)

 Claire Noyce                               020 3764 2341

 MEDiSTRAVA Consulting (Financial PR)

 Mark Swallow / David Dible                 020 7638 9571

About Sareum

Sareum is a specialist drug development company delivering targeted small
molecule therapeutics to improve the treatment of cancer and autoimmune
diseases. The Company aims to generate value through licensing its candidates
to international pharmaceutical and biotechnology companies at the preclinical
or early clinical trials stage.

Sareum is advancing internal programmes focused on distinct dual tyrosine
kinase 2 (TYK2) / Janus kinase 1 (JAK1) inhibitors through preclinical
development as therapies for autoimmune diseases, including the 'cytokine
storm' immune system overreaction to Covid-19 and other viral infections,
(SDC-1801) and cancer immunotherapy (SDC-1802).

Sareum also has an economic interest in SRA737, a clinical-stage oral,
selective Checkpoint kinase 1 (Chk1) inhibitor that targets cancer cell
replication and DNA damage repair mechanisms. Preliminary Phase 2 and
comprehensive preclinical data suggest SRA737 may have broad application in
combination with other oncology and immune-oncology drugs in genetically
defined patients.

SRA737 was discovered and initially developed by scientists at The Institute
of Cancer Research in collaboration with Sareum, and with funding from Sareum
and Cancer Research UK. SRA737 was licensed by CRT Pioneer Fund (CPF) to
Sierra Oncology Inc. Sierra continues to explore options that would enable the
development of SRA737 to advance.

Sareum Holdings plc is listed on the AIM market of the London Stock Exchange,
trading under the ticker SAR. For further information, please visit the
Company's website at www.sareum.com (http://www.sareum.com)

- Ends -

 

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