Botanix Pharmaceuticals (ASX:BOT) placement and SPP raises just shy of $6m

• Botanix Pharmaceuticals (BOT) has raised $5.96 million through a placement and share purchase plan (SPP)
• The company today reported its SPP, which closed last week, raised $960,000 — roughly a third of the $3 million sought
• Meanwhile, the dermatology company recently gained shareholder approval to issue directors 7.6 million shares to raise $500,000 as part of a previous capital raise announced in September
• Botanix is using the money raised to advance its dermatology assets following its recent successful rosacea trial and to commercialise its Sofpironium Bromide lead product
• Company shares are down 0.79 per cent to trade at 6.25 cents at 12:18 pm AEDT

Botanix Pharmaceuticals (BOT) has raised $5.96 million through a placement and share purchase plan (SPP) to advance its dermatology assets.

The company today reported it had completed its two-tranche placement, which raised $5 million, but its SPP fell short, only raising roughly $960,000 of BOT’s planned $3 million.

Botanix expects the SPP shares will be issued on November 30 and will likely commence trading on December 1.

“The board is pleased to have provided our shareholders the opportunity to participate in the SPP at the same issue price as the placement undertaken to Antares Capital,” BOT Executive Chair Vince Ippolito said.

At the end of last month, the clinical dermatology company announced its plans to raise capital via a placement to new institutional investor Antares Capital and through a share purchase plan (SPP).

The first tranche raised the majority of the placement sum earlier this month. Under the second tranche, Botanix issued roughly 8.6 million shares at 6.3 cents to Antares Capital to raise the remaining $544,798.

The healthcare stock is using the almost $6 million raised to progress its dermatology assets in light of its recent successful BTX 1702 rosacea study.

Funds will also help the company prepare for US Food and Drug Administration approval and the commercial launch of its Sofpironium Bromide product to treat primary axillary hyperhidrosis (PAH). PAH is a chronic disorder that causes uncontrollable excessive sweating.

Further, the company has received approvals at the recent annual general meeting to proceed with the issue of about 7.6 million shares to directors to raise $500,000 as part of a previous capital raising announced in September.

Botanix shares were down 0.79 per cent to trade at 6.25 cents at 12:18 pm AEDT.