- Neurotech (NTI) is set to pocket $3.5 million via an underwritten exercise options shortfall and an oversubscribed private placement
- The placement's lead, the Merchant Opportunities Fund, is set to underwrite the shortfall from the exercise of around 26.1 million listed options, with Neurotech set to collect $1.56 million as a result
- The remaining $2 million is owed to binding commitments from sophisticated and professional investors who were offered just over 36.3 million fully paid ordinary shares at 5.5 cents each
- Proceeds from the placement and underwriting are expected to go towards developing the Mente home therapy device and research into the use of cannabinoids to treat neurological disorders
- NTI closed the day down 11.3 per cent at 6.3 cents per share
Neurotech (NTI) is set to pocket $3.5 million via an underwritten exercise options shortfall and an oversubscribed private placement.
The healthcare player reached an agreement with the Merchant Opportunities Fund to underwrite the shortfall from the exercise of 26,122,966 listed options, which are due to expire at the end of March.
As a result, Neurotech is set to collect $1.56 million from the exercise at six cents apiece.
The remaining funds stem from binding commitments made via a $2 million placement, under which 36,363,637 fully paid ordinary shares were offered to sophisticated and professional investors at 5.5 cents each.
Proceeds from these activities are set to go towards executing its existing business plan, including the continued development and marketing of its Mente home therapy device and research into the use of cannabinoids to treat neurological disorders including autism and ADHD.
Its upcoming phase one and two human clinical trials through Monash Children's Hospital will focus on paediatric patients who have autism and related disorders and are tipped to start at the end of this quarter.
Placement shares are expected to settle on or about Thursday, March 11, and allotted on Monday, March 15, 2021.
Neurotech will also issue the Merchant Opportunities Fund 10 million share options as part of its fee for the underwriting.
Neurotech Chairman Brian Leedman said he was pleased to secure the funding.
NTI closed the day down 11.3 per cent at 6.3 cents per share.