Date: 2014-08-05
Type of information: Private placement
Company: Phosphagenics (Australia)
Investors: institutional and sophisticated investors in Europe, USA, Asia and Australia
Amount: A$19.3 million (€13.3 million)
Funding type: private placement
Planned used:
Others: * On August 5, 2014, Phosphagenics announced that the company has now achieved its target of A$3 million via its Share Purchase Plan offered to shareholders, which is part of the Company’s A$19.3 million new equity capital raising announced to
the market on 11 July 2014. Of the A$19.3 million the Company has received A$15.3 million with the final A$4.08 million tranche to be placed to institutions and sophisticated investors subject to shareholders’ approval at the General Meeting to be held on Monday 25 August 2014. As The Plan has been significantly oversubscribed there will be a scale-back of the SPP applications. Refunds from the scale-back will be dispatched to shareholders in the coming week. Pursuant to the Plan, the Company will be allotting 37,500,000 new shares at A$0.08 on Wednesday 6 August 2014 with these new shares
beginning trading on the ASX on Friday 8 August 2014. In total the Company received over A$5.6 million in application monies by the Closing Date. Allocations to shareholders were based on the shareholders’ existing holdings
in the following manner:
• Shareholders with less than 5,000 shares...allocated up to A$500 (6,250 shares);
• Between 5,000 shares but less than 25,000 shares...allocated up to A$1,000 (12,500 shares);
• Between 25,000 shares but less than 1 million shares…allocated up to A$1,000 (12,500 shares) plus 68% of the application balance; &
• Over 1 million shares, full allocation.
* On July 11, 2014, the Australian drug delivery company, Phosphagenics, has raised $19.3 million via a placement of $16.3 million to institutional and sophisticated investors in Europe, USA, Asia and Australia and $3 million from a share purchase plan (SPP) to be offered to existing shareholders. The placement of $16.3 million will be made in two tranches. “This capital raising positions us strongly to fulfil our commercialisation objectives and fully funds our scheduled TPM®/opioid clinical trial programs. The capital raised is earmarked for our pivotal TPM®/Oxymorphone Phase 2 clinical trial in the USA scheduled for the first half of 2015 and our upcoming TPM®/Oxycodone Phase 2 trial in Australia,” said CEO, Harry Rosen. “The capital raising comes at a time when the Company is focusing on exploiting the commercialisation of several of its lead programs. We have recently strengthened our business development capacity in the US to assist in this process. While we have unquestionably shown that our technology provides enhanced delivery solutions across a wide range of products, we now need to translate this to commercial outcomes,” said Harry Rosen. The completion of this capital raising and the investment by new and existing institutional shareholders is a strong endorsement of the TPM® technology and commercial prospects of Phosphagenics. The institutional placement is for initially 153,000,000 shares at 8 cents per share. This represents a discount of 11% to the last sale price of 9 cents. A placement of a further 51,000,000 shares at the same price will be subject to shareholders’ approval at a General Meeting to be held on or around 25 August. The lead manager of the placement was Bell Potter Securities Ltd, assisted by Taylor Collison Ltd as co-manager for Australian institutions. The Company received widespread support from local and overseas institutional investors, the majority of which were healthcare specific investment funds, which responded positively to the Company’s technology and strategic plans. Several of Phosphagenics existing institutional holders also took allocations in this placement. Phosphagenics will also seek to raise a further $3 million through an SPP to existing shareholders also at 8 cents per share. The record date for participating in the SPP offer is 10 July 2014. The SPP opening date will be 15 July 2014.
Therapeutic area: Technology - Services - CNS diseases
