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Diurnal Group plc (AIM: DNL), the specialty pharmaceutical company targeting patient needs in chronic endocrine (hormonal) diseases, today announces a proposed conditional placing (the "Placing") with institutional investors to raise a minimum of approximately £7.0 million in aggregate before expenses at the Placing Price of 32 pence per new Ordinary Share.

Highlights

• The net proceeds of the Placing will be used to progress the development and commercialisation of Diurnal's products, including, inter alia:

• continue the development of the European commercial organisation and roll-out of Alkindi®;
• commence market access activities for Chronocort® in Europe ahead of anticipated approval in Q1 2021;
• strengthen the Group's balance sheet in connection with licensing discussions for Alkindi® and Chronocort® in the US and the rest of the world; and
• progress the Group's early-stage pipeline into clinical trials, including proof-of-principle studies and further development of DITEST™, the native oral testosterone formulation

• Based on the Directors' current assumptions, which assume both a successful H1 2020 US licencing deal and a successful marketing authorisation in Q1 2021 and subsequent launch of Chronocort®, the net proceeds of the Placing are expected to provide funding to profitability for the Company's late-stage cortisol replacement franchise

• The Placing Price represents a discount of approximately 4.5 per cent. to the mid-market closing price of the Company's Ordinary Shares on 5 March 2020, being the last practicable date prior to the date of this announcement.

The Placing will be conducted by way of an accelerated bookbuilding process (the "Bookbuild"), which will be launched immediately following this Announcement in accordance with the terms and conditions set out in Appendix II. The Placing Shares are not being made available to the public. It is envisaged that the Bookbuild will be closed no later than 4.30 p.m. GMT today, 6 March 2020. Details of the number of Placing Shares and the gross proceeds of the Placing will be announced as soon as practicable after the closing of the Bookbuild. The Placing will not be underwritten.

The Placing is conditional upon, amongst other things, the passing of the Placing Resolutions to be considered by Shareholders at the General Meeting to be held at 2.00 p.m. on 25 March 2020 at the offices of Eversheds Sutherland (International) LLP at 1 Wood Street, London EC2V 7WS.

Set out below in Appendix I is an adapted extract from the draft Circular that is proposed to be sent to Shareholders after the closure of the Bookbuild. The final Circular and Notice of General Meeting will be sent to Shareholders and published on the Company's website shortly after the closure, and announcement of the results, of the Bookbuild.

The capitalised terms not otherwise defined in the text of this Announcement are defined in Appendix III and Appendix IV and the expected timetable of the principal events is set out in Appendix V.

Martin Whitaker, PhD, Chief Executive Officer of Diurnal, commented: 

"Diurnal has delivered against all the key milestones set out at the time of the Company's last fundraising, including the continued development of our commercial organisation and roll-out of Alkindi® in Europe, as well as regulatory submissions for both Chronocort® in Europe and Alkindi® in the US. Funds raised as a result of this proposed Placing  will allow us to progress our vision of becoming a world-leading specialty pharma company in endocrinology, in particular through supporting the continued roll-out of Alkindi® and commencing market access activities for Chronocort® in Europe ahead of its anticipated approval in Q1 2021. The bolstering of our balance sheet is also timely as we progress licensing discussions with potential US partners. We also expect the proceeds to provide funding to profitability for the Company's late-stage cortisol replacement franchise."

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014 (MAR).

This summary should be read in conjunction with the full text of the following announcement.

For further information

Please visit www.diurnal.co.uk or contact:

Diurnal Group plc	+44 (0)20 3727 1000
Martin Whitaker, Chief Executive Officer Richard Bungay, Chief Financial Officer
Panmure Gordon (UK) Limited (NOMAD and Joint Broker)	+44 (0) 20 7886 2500
Corporate Finance: Freddy Crossley, Emma Earl Corporate Broking: James Stearns
Cantor Fitzgerald Europe (Joint Broker)	+44 (0)20 7894 7000
Corporate Finance: Philip Davies, William Goode, Luke Philippou Healthcare Equity Sales: Andrew Keith
FTI Consulting (Investor Relations)	+44 (0)20 3727 1000
Simon Conway Victoria Foster Mitchell

 

Notes to Editors

About Diurnal Group plc

Founded in 2004, Diurnal is a UK headquartered European specialty pharma company developing high quality products for the global market for the life-long treatment of chronic endocrine conditions, including Congenital Adrenal Hyperplasia and Adrenal Insufficiency. Its expertise and innovative research activities focus on circadian-based endocrinology to yield novel product candidates in the rare and chronic endocrine disease arena.

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