- SUDA Pharmaceuticals hopes to raise roughly $3.56 million through a one-for-one non-renounceable entitlement offer
- Over 142.2 million shares will be issued at 2.5 cents each
- Additionally, shareholders will receive one new option for every three new shares at five cents each
- SUDA will use the money to develop its Anagrelide mouth spray, OroMist technology, and the ZolpiMist spray, which treats insomnia
- Funds will also go towards potentially acquiring new assets, and general working capital
- Company shares are down 10 per cent and are trading for 3.6 cents each
SUDA Pharmaceuticals (SUD) will raise a one-for-one non-renounceable entitlement offer of fully paid ordinary shares to raise $3.56 million.
SUDA will use the money to develop its Anagrelide mouth spray drug and its OroMist technology, which it uses to reformulate existing pharmaceuticals.
The funds will also go towards the potential acquisition and development of new assets, and for general working capital.
“This is an exciting time for the company as we look to secure Therapeutic Good Administration (TGA) approval for ZolpiMist in Q4 of the 2020 calendar year and we continue to develop anagrelide into a pharmaceutical grade oral spray formulation for the treatment of solid tumours,” CEO Dr Michael Baker.
ZolpiMist is a “first-in-class” oral spray used to treat insomnia.
The company will issue 142,254,397 new ordinary shares at 2.5 cents each. The issue price represents a 37.5 per cent discount to the last traded price of company shares, and a 34.3 per cent discount to the 15-day volume-weighted average price.
For every three new shares, shareholders will receive one new option at an exercise price of five cents. The term will expire on July 31, 2022.
Company shares are down 10 per cent and are trading for 3.6 cents each at 12:12 pm AEST.