v3.26.1
Derivative financial liability – current
12 Months Ended
Dec. 31, 2025
Derivative Financial Liability Current  
Derivative financial liability – current

 

19Derivative financial liability – current

               
   2025
£’000
   2024
£’000
   2023
£’000
 
Equity settled derivative financial liability            
At 1 January   383    4,160    85 
Warrants issued   5,024    3,059    4,562 
Transfer to share premium on exercise of warrants   (196)   (3,618)    
Gain recognised in finance (income)/expense within the consolidated statement of comprehensive income   (2,296)   (3,218)   (487)
At 31 December   2,915    383    4,160 

 

Equity settled derivative financial liability is a liability that is not to be settled for cash.

 

The Company issues warrants in the ADSs of the Company as part of registered direct offerings and private placements in the US. The number of ADSs to be issued when exercised is fixed, however the exercise price is denominated in US Dollars being different to the functional currency of the Company. Therefore, the warrants are classified as equity settled derivative financial liabilities recognised at fair value through the profit and loss account (‘FVTPL’). The financial liability is valued using the Black-Scholes model in 2024 and 2023. Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on re-measurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability and is included in the ‘finance income’ or ‘finance expense’ lines item in the income statement. A key input in the valuation of the instrument is the Company share price.

 

Details of the warrants are as follows:

 

December 2025 warrants

 

In December 2025 the Company issued 6,097,562 Series L ADS warrants as part of the Registered Offering in the US.

 

July 2024 warrants

 

In July 2024 the Company issued 21,315 Series J ADS Warrants and 21,315 Series K warrants as part of the Registered Direct Offering and Concurrent Private Placement in the US. The Series K warrants expired on 22 July 2025.

 

May 2024 warrants

 

In May 2024 the Company issued 9,434 Series G ADS Warrants and 14,780 Series H warrants as part of the Warrant Inducement in the US. The Series H warrants expired on 22 May 2025.

 

December 2023 warrants

 

In December 2023 the Company issued 11,998 Series E ADS Warrants and 11,998 Series F ADS Warrants as part of the Registered Offering in the US. The Series F warrants expired on 23 December 2024.

 

May 2023 warrants

 

In June 2023 the Company issued 1,098 Series D ADS Warrants as part of a registered direct offering and private placement in the US after securing shareholder approval.

 

May 2020 warrants

 

In May 2020 the Company issued 2 ADS warrants as part of a registered direct offering in the US. The warrants expired on 20 November 2025.

 

October 2019 warrants

 

In October 2019 the Company issued 1 ADS warrants as part of a registered direct offering in the US. The warrants expired on 23 June 2025.

 

* Number and original price of warrants have been adjusted to reflect the share consolidation and ratio change of ADS’s to ordinary shares that occurred on 24 March 2023 and the ratio change of ADS’s to ordinary shares on 5 July 2023, 4 October 2024 and 31 July 2025.

 

DARA warrants and share options

 

The Group also assumed fully vested warrants and share options on the acquisition of DARA Biosciences, Inc. (which took place in 2015). The number of ordinary shares to be issued when exercised is fixed, however the exercise prices are denominated in US Dollars. The warrants are classified equity settled derivative financial liabilities and accounted for in the same way as those detailed above. The financial liability is valued using the Black-Scholes option pricing model. All warrants and options have lapsed as at 31 December 2025.

 

The following table details the outstanding warrants over ADSs and ordinary shares as at 31 December and also the movement in the year:

                                                            
   At 31
December
2022
   Lapsed   Granted   At 31
December
2023
   Lapsed   Granted   Exercised   At 31
December
2024
   Lapsed   Granted   Exercised   At 31
December
2025
 
ADSs                                                            
December 2025 grant                                       6,097,562        6,097,562 
July 2024 grant                       42,630        42,630    (8,594)       (17,018)   17,018 
May 2024 grant                       24,214        24,214    (6,695)       (8,085)   9,434 
December 2023 grant           23,996    23,996    (1,602)        (17,129)   5,265    (4,753)           512 
May 2023 grant           1,098    1,098                1,098                 1,098 
May 2020 grant   2            2                2    (2)            
October 2019 grant   1            1                1    (1)            
Ordinary shares                                                         
Dara warrants                                                 
Dara options   138    (10)       128    (29)           99    (99)            

 

* Number and original price of warrants have been adjusted to reflect the share consolidation and ratio change of ADS’s to ordinary shares that occurred on 24 March 2023 and the ratio change of ADS’s to ordinary shares on 5 July 2023, 4 October 2024 and 31 July 2025.