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Palla Pharma (ASX:PAL) raises $12.2M to improve working capital
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  • Pharmaceutical company Palla Pharma (PAL) has raised roughly $12.24 million via a placement and institutional entitlement offer
  • Broken down, $4 million was raised via the placement while the remaining $8.2 million was raised through the institutional entitlement offer
  • The institutional entitlement offer forms part of the fully-underwritten $18 million capital raising announced last month
  • The remaining $5.8 million will be raised via a retail entitlement offer, which will open on March 5
  • Once received, Palla Pharma will use the funds to pay existing debt, improve its working capital position and cover costs associated with the raise
  • Palla Pharma has ended the day 7.83 per cent in the red with shares trading at 60 cents

Pharmaceutical company Palla Pharma (PAL) has raised roughly $12.24 million via a placement and institutional entitlement offer.

Broken down, $4 million was raised via the placement while the remaining $8.2 million was raised through the institutional entitlement offer.

Additionally, the institutional entitlement offer forms part of the fully underwritten $18 million capital raising that was announced to the market on February 26.

Institutional entitlement offer

Under the institutional offer, roughly 24.4 million new shares were issued at 50 cents.

Approximately 93.9 per cent was taken up by eligible institutional shareholders with participants to receive two new shares for every nine held as of March 2.

Shortfall was allocated to a range of new and existing institutional and high net worth investors.

Shares are expected to be allocated on March 8.

Retail entitlement offer

The retail entitlement offer will open on March 5 and aims to raise up to $5.8 million.

Eligible shareholders will also be able to subscribe for two new shares for every nine held as of March 2.

Once received, Palla Pharma will use the funds to pay existing debt, improve its working capital position and cover costs associated with the raise.

Palla Pharma has ended the day 7.83 per cent in the red with shares trading at 60 cents in a $75.56 million market cap.

PAL by the numbers
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