- Biopharma company Bionomics (BNO) has successfully tapped institutions for almost $900,000 in the first part of its recently-announced capital raising plan
- The company plans to raise another $1.28 million from a retail segment of the entitlement offer, bringing the total proceeds to just under $2.2 million
- New funds will go towards a second Phase II trial for the company’s BNC210 drug, which it is testing to treat post-traumatic stress disorder (PTSD)
- Under the entitlement offer, investors can subscribe for one new share for every 12.54 owned at four cents each
- This is a nifty 79 per cent discount to the company’s last closing price of 19 cents before the offer was announced
- Today, shares fell 16.67 per cent to close worth 15 cents each
Biopharma company Bionomics (BNO) has successfully tapped institutions for almost $900,000 in the first part of its recently-announced capital raising plan.
The company said last week it planned to raise just under $2.2 million through a one-for-12.54 entitlement offer.
The offer is non-renounceable and priced new shares at four cents a pop — a whopping 79 per cent discount on the company’s closing price of 19 cents the day before the announcement.
The new funds will go towards funding a second phase two trial for the company’s post-traumatic stress disorder (PTSD) treatment, dubbed BNC210.
The institutional part of the offer has now been completed and pulled in $893,000 for the company.
Bionomics Executive Chairman Dr Errol De Souza said the company is “extremely pleased” with the result of the institutional offer.
“The success of the offer is testament to Bionomics shareholders’ confidence in the direction of the company and the opportunities presented by progressing the development programme for BNC210 for the treatment of PTSD,” Errol said.
For mum and dad investors wanting to take advantage of the hefty discount, the retail segment of the entitlement offer opens on Thursday, October 1, and will close two weeks later. Retail investors can subscribe for new shares under the same terms as the institutions.
Bionomics plans to raise $1.28 million from the retail segment of the offer, taking the total new funding to $2.17 million.
Company shares broke out of a two-day trading halt this morning and promptly nosedived. Shares closed worth 15 cents each — 16.67 per cent down on the company’s last closing price, but still a healthy premium to the four-cent entitlement offer.