Biotech company Paradigm Pharmaceuticals has launched a $77.9 million capital raise.
The raise will invest in further clinical research, drug development and hiring US-based million staff. $51.6 million of the raise will comprise of placement to investors across Australia.
This placement will consist of an issue of 34,370,099 shares. The remaining $26.3m will go to an accelerated non-renounceable entitlement offer underwritten by Bell Potter securities.
The entitlement offer will consist of 17,537,431 shares at A$1.50 per share. This raise will put the company in a strong position to negotiate commercial transactions.
The company is currently researching osteoarthritis (OA) and mucopolysaccharidosis (MPS) treatment. MPS is a rare condition where the patient is unable to break down sugar molecules throughout the body.
Both OA and MPS research projects are currently in stage three. Current OA research shows possible remission of disease and reduction of pain.