- Biopharmaceutical company Dimerix (DXB) has successfully raised $2.5 million
- A total of 22.7 million ordinary shares were issued to sophisticated and institutional investors at a price of $0.11 each
- The money will be used to develop the company's DMX-700 for chronic obstructive pulmonary disease (COPD), as well as corporate costs and general working capital
- COPD is a life-threatening lung disease that's mainly caused by tobacco smoke, air pollution and asthma
- Currently there is no way to slow down progression or stop it
- Dimerix has dropped 11.5 per cent with shares trading for 11.5 cents apiece
Clinical-stage biopharmaceutical company Dimerix (DXB) has successfully raised $2.5 million.
A total of 22.7 million fully paid ordinary shares were issued to sophisticated and institutional investors at a price of $0.11 each.
This price represents a 15.4 per cent discount to the last closing price of 13 cents on November 28, and a 7.3 per cent discount to the 15-day volume weighted average price.
Settlement and allocation of the shares is expected to take place later this week or during the week beginning December 9. The shares will then be admitted to trading shortly after.
The funding will be used to progress DMX-700 for chronic obstructive pulmonary disease (COPD) towards in vivo proof of concept, along with initial studies into additional pipeline candidates, corporate costs, and general working capital.
"With DMX-200 nearing completion of two different phase 2 clinical trials, with read-outs expected mid-2020, and DMX-700 entering proof-of-concept studies, 2020 has the potential to be a transformational year for the company," Dimerix Chairman Dr James Williams commented.
COPD is a progressive and life-threatening lung disease that is primarily caused by tobacco smoke (either active or secondary smoke), air pollution, dust and fumes, and long-term asthma.
It is the fourth-leading cause of death in the world and although treatments exist to improve the symptoms, there is currently no way to slow progression or cure it.
The global COPD treatment market was valued at US$14 billion (A$20.4 billion) in 2017 and is projected to increase at an annual growth rate of 4.9 per cent to 2026.
Dimerix has completed initial studies and key steps in securing ownership over what it believes is an important new drug discovery by lodging a provisional patent application for DMX-700.
Over the next 12 months Dimerix will conduct further proof-of-concept studies to perform verification in support of a robust product development pathway and patent position.
"We believe DMX-700 could make a real difference in the lives of those suffering from COPD, where there is a significant unmet need," Dimerix CEO and Managing Director Dr Nina Webster commented.
"Dimerix has a strong background in G protein-Coupled Receptors, or GPCRs, on the back of its proprietary Receptor-HIT assay. GPCRs represent one of the most important families of drug targets involved in many disease conditions," she added.
Dimerix has dropped 11.5 per cent in today's trade with shares priced at 11.5 cents apiece at 3:11 pm AEDT.