Cyclacel aims to raise $9.5m for new drugs

CYCLACEL, the Dundee-based pharmaceuticals firm listed in New York, last night unveiled a move to raise $9.5 million (£5.9m) to fund its drug development.

The company said it would sell 2.85 million "units" – each consisting of one share and one warrant to purchase a further quarter of a share at $2.51 – to "select" institutional investors.

The warrants come into effect six months from the date of purchase and last five years.

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Roth Capital Partners acted as placement agent for the offering, while Merriman Curhan Ford & Co was financial adviser. The sale is due to conclude tomorrow.

Cyclacel chief executive Spiro Rombotis said: "The proceeds of the financing together with our current cash, cash equivalents and marketable securities should provide the financial resources to continue clinical development of sapacitabine and seliciclib, the company's lead drugs."

Sapacitabine is being developed to treat leukemia in older people, while seliciclib is aimed at treating lung cancer.

Cyclacel was founded in 1996 by Professor Sir David Lane of Dundee University, who was joined by fellow scientist Professor David Glover in 1999.

The company's corporate base is in New Jersey, in the United States, but its main research laboratory remains in Dundee.