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Ananda Developments Plc (AQSE:ANA) announced that its chairman, Charles Morgan, is leading a significant £2.15 million fundraising effort, contributing over £2 million at a share price of 0.3p. This substantial contribution is part of the company’s initiative to advance its work in inflammatory pain treatment.
In addition to Morgan’s financial input, both he and the company's chief executive, Melissa Sturgess, have agreed to capitalise the unsecured debt owed to them. Morgan’s debt stands at around £1.9 million, while Sturgess will capitalise approximately £10,000. This debt conversion into shares further strengthens the company’s financial position. A retail offer via the Winterflood WRAP platform is also underway to raise up to £100,000, providing additional support to the fundraising campaign.
The funds raised are earmarked for several key areas in Ananda's ongoing development of its MRX1 drug candidate. Specifically, the company plans to use the money for manufacturing MRX1 to support its Phase II studies for chemotherapy-induced peripheral neuropathy (CIPN) and endometriosis. Additionally, the proceeds will fund a pharmacokinetic study for MRX1 in Australia and contribute to general working capital needs.
Following the completion of the fundraising and debt capitalisation, Morgan will hold 57.43% of Ananda's shares in issue, while Sturgess will hold 9.94%. This significant equity stake solidifies Morgan’s position as the largest shareholder and reflects his continued commitment to the company’s growth and its clinical objectives.
Sturgess expressed confidence in the company’s future, stating that the substantial equity support from Morgan and other contributors places Ananda in a strong position to move forward with its clinical trials. The focus now will be on reaching important milestones, which include progressing MRX1 through trials, securing licensing agreements, and eventually bringing the drug into the NHS and other licensed markets.
Overall, the fundraising efforts and debt restructuring are expected to play a crucial role in advancing Ananda’s work in inflammatory pain treatment, with the company focused on bringing its MRX1 candidate closer to market approval and clinical success.
