- Botanix Pharmaceuticals has announced a $40 million share placement for the clinical development and research of its cannabinoid skincare products
- Under the placement, Botanix will issue roughly 190 million new shares at 21 cents a piece. Shareholder approval is not needed for the placement.
- Along with the capital raising, the company is appointing new U.S.-based executives
- Botanix shares are down 9.62 per cent today, trading for 24 cents per share in a $181.90 million market cap.
Botanix Pharmaceuticals has announced a $40 million share placement for the clinical development and research of its cannabinoid skincare products.
The company said in an announcement to shareholders today it has received firm commitments for the placement by U.S. based biotech investment funds and institutional investors.
Under the placement, Botanix will issue roughly 190 million new shares at 21 cents a piece, representing a 16.7 per cent premium on their last closing price.
Shareholder approval is not required for the placement, which will be taken up in a single tranche. As such, Botanix expects the placement to be settled on Wednesday, August 7; less than a week after the capital raising was announced.
The funds raised in the placement will help Botanix take on some key clinical development programs, while speeding up its commercialisation strategy.
The company says it is now fully funded to run some supportive studies for its cannabinoid acne and atopic dermatitis skincare products.
Along with the capital raising, the company is making some additions to its upper management. Both based in the U.S., Richard Peterson and Howie McKibbon have been appointed to take on the role of Chief Financial Officer and Chief Commercial Officer, respectively.
Botanix Executive Chairperson and President Vince Ippolito said the support from the share placement puts the company in a position to advance to the next level of research and development.
“The recent release of data from multiple studies has generated an exceptional level of interest globally. This has created an opportunity for the company to further understand the applications of cannabinoids in skin diseases,” Vince said.
Botanix has an exclusive licence to use its proprietary drug delivery system, Permetrex, for direct skin treatment in all skin diseases.
Along with its planned and ongoing cannabinoid skincare studies, Botanix is working to test various applications of Premetrex with several parties.
Botanix shares are down 9.62 per cent after today’s placement, trading for 24 cents per share in a $181.90 million market cap.