Join our daily newsletter At The Bell to receive exclusive market insights
- Noxopharm (NOX) has announced it will undertake an entitlement offer to raise $7.9 million
- Shareholders will have the opportunity to subscribe for one new share for every 2.5 held at an offer price of 13 cents per share
- Participating shareholders will also receive one new listed option for every three shares purchased
- These options will have an exercise price of 30 cents and will be valid for three years from the date of issue
- Noxopharm will use the money to fund its ongoing oncology programs, general working capital, and costs associated with the entitlement offer
- Noxopharm has dropped 5.13 per cent and shares are trading for 18.5 cents each
Noxopharm (NOX) has announced it will undertake an entitlement offer to raise $7.9 million.
The drug development company will offer shareholders the opportunity to subscribe for one new share for every 2.5 shares held at an offer price of 13 cents per share.
This price is a 33 per cent discount to the 15-day volume-weighted average price from May 6’s 19.5 cent closing price.
Participating shareholders will also receive one new listed option for every three shares purchased.
These options will have an exercise price of 30 cents and will be valid for three years from the date of issue.
The entitlement offer will open on May 21, close on June 11 and shares will be issued on June 18. Trading with the new shares will begin on June 19.
“Noxopharm is looking at an exciting future and this capital raise is designed to underpin that future in three main ways,” CEO Graham Kelly stated.
Noxopharm will primarily use the money to fund its ongoing oncology programs. These include the DARRT-2 phase 2b clinical trial of Veyonda in patients with late-stage prostate cancer, completing its LuPIN phase two trial, and initiating a study in the U.S. and other countries to test Veyonda in blocking the development of septic shock syndrome in COVID-19 patients.
Some money will also go towards general working capital and costs associated with the entitlement offer.
Noxopharm has dropped 5.13 per cent and shares are trading for 18.5 cents each at 1:02 pm AEST.
