PriceSensitive

Argenica Therapeutics (ASX: AGN) taps investors for $4 million to fund ischaemic stroke trial

ASX News, Health Care
ASX:AGN      MCAP $92.11M
02 June 2023 15:46 (AEST)
Argenica Therapeutics (ASX:AGN) - CEO and Managing Director, Dr Liz Dallimore

Source: Argenica Therapeutics

Argenica Therapeutics (AGN) has wrapped up a $4 million placement to fund a phase two trial of its neurological drug, ARG-007.

The company reported the capital raise was supported by large existing shareholders, family offices, new institutional investors, and sophisticated high net-worth investors.

Argenica will issue 11.4 million fully paid ordinary shares at 35 cents apiece to raise the funds, representing a 17.6 per cent discount to the company’s last traded price, and a 12.7 per cent discount of the ten-day volume weighted average price (VWAP).

Settlement of the placement is expected to occur on June 8, with the shares to begin trading the following day.

The company’s placebo-controlled, phase two trial involves the drug being tested on ischaemic stroke patients, which is caused by a clot in a vessel in the brain.

The trial will determine the safety, tolerability, pharmacokinetics, and preliminary efficacy of a single dose at multiple hospitals across Australia.

“We are delighted to have secured the support again of many of our large and existing shareholders, as well as new institutional investors who recognise the importance of advancing ARG-007 into a phase two trial in ischaemic stroke patients,” Argenica Therapeutics Managing Director Dr Liz Dallimore said.

Argenica will also use the funds to support further preclinical activities for other neurological conditions such as Alzheimer’s Disease.

AGN was down 5.88 per cent, trading at 40 cents at 3:40 pm AEST.

Related News