Drug discovery and development company e-Therapeutics is proposing to raise 40m pounds through an issue of new ordinary shares to existing and new institutional investors.

The new shares will be priced at 32p, a premium of 4.0% to the closing mid-market price on Friday.

Following the proposed issue, the company will have a pro-forma net cash and liquid resources of approximately £48m.

According to the the company's update, the resources are intended to support its currently planned discovery and development activities to 2017, by which time, it said it believed that an out-licensing deal could be concluded for the company's lead cancer drug ETS2101.

Professor Malcolm Young Chief Executive Officer of e-Therapeutics, said: "We appreciate the continuing support of existing investors and are also pleased to have attracted significant new investors to the company. With our financial position secure, we are well-placed to build further shareholder value based on our innovative platform and product portfolio."

e-Therapeutics' share price was up 4.88% to 32.25p at 09:03 on Monday.

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