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- Pharmaxis (PXS) has received firm commitments to raise $4.4 million through a placement
- Sophisticated and institutional investors are set to subscribe for 54.6 million fully paid ordinary shares at 8 cents per share, a 1.3 per cent premium to its most recent closing price
- Funds raised will strengthen the company’s balance sheet to support ongoing clinical studies in myelofibrosis and skin scarring
- New shareholder, Karst Peak Capitall will invest $3.2 million for an 8.9 per cent hold in the company
- Shares are trading 8.9 per cent higher at 8.6 cents
Pharmaxis (PXS) has received firm commitments to raise $4.4 million through a placement.
Sophisticated and institutional investors are set to subscribe for 54.6 million fully paid ordinary shares at eight cents per share, a 1.3 per cent premium on the last closing price.
The pharmaceutical research company is conducting a study in to myelofibrosis with its lead drug PXS-5505, which is already recruiting, as well as another study in patients with problematic scarring with its topical drug PXS-6302.
Plans are in place to use the money raised to strengthen the company’s balance sheet to support these studies.
PXS has also announced that it will sell its Bronchitol Russian distribution rights for around $2 million to further strengthen the balance sheet.
Investment management firm Karst Peak has committed to invest $3.2 million towards the placement and, in turn, will gain an 8.9 per cent share holding.
Existing shareholder, BVF Partners LP has also committed to invest a further $800,000 to maintain its shareholding to 19.5 per cent.
Chief Executive Officer Gary Philips said the company is delighted to welcome Karst Peak as a major shareholder. He went on to spruik the commencement of the company’s clinical studies, saying they will “deliver results that will have significant value to both patients and shareholders.”
Bell Potter Securities has been tasked as the sole lead manager and book-runner to the placement.
PXS entered a trading halt yesterday but resumed trade today.
Settlement of placement shares is expected on Tuesday, April 20.
Shares are trading 8.9 per cent higher at 8.6 cents each at 1:54 pm AEST.
