FOR IMMEDIATE RELEASE
29 May 2020
OKYO Pharma Limited
(“OKYO” or the “Company”)
Issue of convertible loan notes to raise £440,000
OKYO, the life sciences and biotechnology company, focused on the discovery and development of novel molecules to treat inflammatory dry eye diseases and chronic pain, is pleased to announce that it has raised £440,000 through the issue of convertible loan notes (“CLNs”). The proceeds of the CLNs will be used for working capital purposes as detailed below. The CLNs carry an interest rate of 20% compounding and have maximum term of 4 years. The CLNs convert into ordinary shares at a price of 0.4p per share and, if converted, the shares will be issued with a warrant attached at an exercise price of 0.4p (with a maximum life of 5 years from the date of issue of the CLN, regardless of the conversion date). Conversion will be subject to shareholder approval.
The CLNs were placed privately with strategic investors.
OKYO intends to use the net proceeds received from the CLNs, together with the funds from the recently announced placing announced on 23 March 2020 (and completed on 28 May 2020), (i) to complete IND enabling studies of Chemerin for dry eye followed by IND submission by Q1 2021, (ii) to complete Pre-IND studies and validation of Proof of Concept for Bam-8 for the treatment of ocular and chronic pain, and (iii) for working capital and other general expenses. The placing and the CLN issue have produced an aggregate of £1,000,000 of additional working capital for the Company (before expenses), the Company will provide additional information on the clinical work planned in due course.
The person who arranged for the release of this announcement on behalf of the Company was Tiziano Lazzaretti, Chief Financial Officer of OKYO.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION (EU) NO 596/2014
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN OR INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION
OKYO Pharma Limited (LSE: OKYO) is a life sciences and biotechnology company admitted to listing on the standard segment of the Official List of the UK Financial Conduct Authority and to trading on the Main Market for listed securities of the London Stock Exchange plc. OKYO is focusing on the discovery and development of novel molecules to treat inflammatory dry eye diseases and chronic pain.
|OKYO Pharma Limited
|+44 (0)20 7382 8300
|Shore Capital Limited (Broker)
|+44 (0)20 7601 6100
For further information, please visit the Company’s website at www.okyopharma.com.