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- Biotech company Actinogen Medical (ACW) has closed an entitlement offer having banked less than a third of its $4.9 million target
- The one-for-five deal was priced at 2.2 cents per share — a 20.6 per cent discount to the five-day volume-weighted average price at the offer date
- The deal failed to excite shareholders though, with just $1.36 million in subscriptions, including additional shares applied for under the top-up facility
- When added to the recent $6 million placement, Actinogen has raised $7.36 million to fund the next stages of two clinical trials
- The XanaFX and XanaMIA studies will test the company’s drug Xanamem in sufferers of Fragile X Syndrome and Alzheimer’s Disease
- Actinogen Medical is trading 2.27 per cent higher at 2.2 cents
Biotech company Actinogen Medical (ACW) has closed an entitlement offer having banked less than a third of its $4.9 million target.
Shortfall
The one-for-five deal was priced at 2.2 cents per share — a 20.6 per cent discount to the five-day volume-weighted average price at the offer date.
The deal failed to excite shareholders though, with just $1.36 million in subscriptions, including additional shares applied for under the top-up facility.
That’s less than 28 per cent of the goal amount.
The company’s board members also applied for their maximum pro-rata entitlements, meaning there was even less independent interest than the 28 per cent indicates.
The company is now assessing its options to allocate the 161 million shortfall shares to third parties.
When added to the recent $6 million placement, Actinogen has raised $7.36 million before costs to fund the next stages of two clinical trials.
CEO and Managing Direector of Actinogen Dr Bill Ketelbey says the trials will begin soon.
“With planning well underway, we are looking forward to commencing the two new phase two clinical trials in Mild Cognitive Impairment due to Alzheimer’s disease and Fragile X syndrome in the first half of next year,” Dr Ketelbey said.
Clinical trials
The XanaFX and XanaMIA studies will test the company’s drug Xanamem in sufferers of Fragile X Syndrome and Alzheimer’s Disease.
Fragile X is a genetic disorder affecting cortisol production, characterised by a range of intellectual developmental and behavioural issues.
Currently only limited treatment options are available, but early indications of Xanamem’s efficacy as a cortisol inhibitor seem promising.
Given the funding shortfall, Actinogen will primarily focus on the XanaMIA study in early-stage Alzheimer’s patients.
This trial will also serve to offer sufferers a therapy with no currently effective treatment.
It’s expected the study will begin enrolment in the first half of 2021.
Actinogen Medical is trading 2.27 per cent higher for 2.2 cents at 12:47 pm AEDT.
