Modus Therapeutics has raised SEK 7.6 million through a directed issue of 20,000,000 shares at SEK 0.38 per share, a discount of about 14.8% to the company’s closing share price on Nasdaq First North Growth Market. Tellus Equity AB and Selandia Alpha Invest A/S led the round, joined by existing shareholders Daniel Nilsson and Saman Naziri.

The proceeds will fund manufacturing of the company’s pharmaceutical product ahead of planned activities, including its ongoing collaboration on severe malaria, and provide runway for business development should the anticipated Phase IIa data prove favorable.

“We are approaching a critical value-driving milestone for Modus Therapeutics, with proof-of-concept data expected around the turn of the year. The private placement is a disciplined step to ensure that we can act decisively on the opportunities that follow – both in driving our development plan forward and in business development,” says John Öhd, CEO, Modus Therapeutics.

The issue increases the company’s share capital to SEK 10,122,107.46 and dilutes existing shareholders by approximately 11.9%.