Arecor raises £6.26m to underpin fresh push for growth

Two associated raises will collectively secure the haul which can now be put in the category of growth capital given the potential of Arecor’s pipeline.

Chair Andy Richards and CEO Sarah Howell have each bought more shares in the AIM-quoted business – a show of confidence that should not be under-estimated.

A placing targeting certain institutional backers, other professional investors including international specialist healthcare funds, and certain directors of the company, has raised gross proceeds of some £5.22m.

Certain shareholders – one a director – have collectively raised a further £1.04m through a subscription. A director participation initiative has brought in around £85,000, the company has revealed.

An August 8 general meeting is expected to rubber stamp the collective raises with new shares admitted to trading on AIM within 24 hours of a resolution being passed.

Based at Chesterford Research Park, Arecor is applying its innovative proprietary formulation technology platform, Arestat™ and developing a portfolio of proprietary products in diabetes and other indications.

The company is working with leading pharmaceutical and biotechnology companies to deliver enhanced reformulations of their therapies.