An AIM-listed drug development company based at Alderley Park has secured a £5m short-term loan.
Redx Pharma, which focuses on cancer and fibrosis, said it entered into the loan with one or more entities controlled by US-based hedge fund group Redmile.
The company said the money will be used to extend its cash runway into the third quarter of 2020 and to augment general working capital.
Under the conditions of the loans, the £5m will be borrowed in a single drawdown and is repayable in full on 31 August.
It comes after Redmile announced early this month it intended to fund Redx Pharma for up to £26.3m, along with French venture capital firm Sofinnova Partners.
At the time, Redmile also announced it intended to provide a £5m short-term loan “as soon as practicable”.
Redmile now holds 48.2 per cent of the company's issued ordinary shares.
