Total
0
Shares
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Palla Pharma (PAL) has announced an $18 million capital raise to help lower its debt and take advantage of future growth opportunities
  • The healthcare stock entered a trading halt prior to market open on Friday before quickly announcing details of the raise
  • PAL is hoping to raise $4 million via a placement to investors as well as $14 million via an entitlement offer which has an institutional and retail component
  • Under the entitlement offers, shareholders will be offered two new PAL shares for every nine held as of March 2
  • Thirty-six million shares will be issued under the offer, priced at 50 cents each, which represents a 27 per cent discount to its last closing price
  • Before today’s trading halt came into effect, shares in Palla Pharma were trading for 68.5 cents

Palla Pharma (PAL) has announced plans to tap investors and shareholders for an extra $18 million in capital via a fundraise.

The healthcare stock entered a trading halt prior to market open on Friday before quickly announcing the details of the capital raise.

The company is hoping to raise $4 million via a share placement to investors. PAL will also raise another $14 million via an entitlement offer, which has both an institutional and retail component.

Under the entitlement offers, shareholders and investors will be offered two new PAL shares for every nine held as of March 2, the record date.

All up, around 36 million PAL shares will be issued at 50 cents each — a 27 per cent discount to the company’s last closing price.

The placement and institutional entitlement offer opened today and will shut on March 1, while the retail entitlement offer is set to open on March 5.

Palla states it’ll use the capital raised from the fundraise to reduce its existing debt and to take advantage of growth opportunities in the U.K. and Europe.

Before today’s trading halt came into effect, shares in Palla Pharma were trading for 68.5 cents.

PAL by the numbers
More From The Market Herald
Advanced Human Imaging, AHI- CEO and Co-Founder Vlado Bosanac

" Advanced Human Imaging (ASX:AHI) appoints Edward F. Greissing Jr. to board

Advanced Human Imaging (AHI) has appointed Edward F. Greissing Jr. to board effective from November 30, 2021.
Rhythm Biosciences (ASX:RHY) - CEO, Glenn Gilbert

" Rhythm Biosciences (ASX:RHY) achieves CE Mark for ColoSTAT

Cancer diagnostic technology company Rhythm Biosciences (RHY) has achieved CE Mark certification for ColoSTAT.
EMVision Medical Devices (ASX:EMV) - CEO, Ron Weinberger

" EMVision Medical Devices (ASX:EMV) reports more strong results

Medical device maker EMVision (EMV) is spiking on the ASX today after releasing further results from a pilot clinical trial of its brain
ECS Botanics (ASX:ECS) - Managing Director and Founder, Alex Keach

" ECS Botanics’ (ASX:ECS) subsidiary buds $4.9m supply agreement

ECS Botanics’ (ECS) subsidiary has secured a $4.9 million agreement to supply resin to Australian cannabis company, Cannvalate.