- Pharmaceutical company Argenica Therapeutics (AGN) receives binding commitments to raise $5.5 million via a placement
- The funds will be raised through the issue of 13.75 million new fully paid ordinary shares to institutional and sophisticated investors at a price of 40 cents each
- AGN will use the money to speed up preclinical activities in traumatic brain injury and hypoxic ischaemic encephalopathy, and advance work required for a phase two trial in stroke patients
- Additionally, the placement ensures Argenica is well funded to complete its upcoming phase one clinical trial in healthy volunteers using ARG-007
- Shares in Argenica are down 7.22 per cent on the market and are trading at 45 cents at 12:59 pm AEST
Pharmaceutical company Argenica Therapeutics (AGN) has received binding commitments to raise $5.5 million via a placement.
The funds will be raised through the issue of 13.75 million new fully paid ordinary shares to institutional and sophisticated investors at a price of 40 cents each.
This price represents a 17.5 per cent discount to Argenica’s last trading price of 48.5 cents and a 12 per cent discount to the 15-day volume-weighted average price.
The placement is expected to settle on June 9 with shares to be issued and begin trading on June 10.
Argenica will use the money to speed up preclinical activities in traumatic brain injury (TBI) and hypoxic ischaemic encephalopathy (HIE) as well as advance work required for a phase two trial in stroke patients.
Additionally, the placement makes sure Argenica is well funded to complete its upcoming phase one clinical trial in healthy volunteers using ARG-007.
“ARG-007 has shown very promising neuroprotective effects on brain cells following different types of brain injuries in animal models. Having additional funds to accelerate our research program across HIE, TBI and global ischaemia will allow the company to establish a comprehensive preclinical data set for these indications,” Managing Director Dr Liz Dallimore said.
“By advancing this preclinical research for these indications now, we will have the required data to commence Phase 2 trials more quickly for these indications following
successful completion of the upcoming Phase 1 trial.”
Shares in Argenica were down 7.22 per cent on the market and were trading at 45 cents at 12:59 pm AEST.