- Cyclopharm (CYC) has completed a share placement to raise $30 million
- Roughly 11.5 million new fully paid ordinary shares were offered at $2.60 per share
- Funds raised will be primarily used to finance activities to accelerate Cyclopharm’s expansion into the U.S. market, pushing its Technegas product
- The placement shares are expected to be issued and commence trading on the ASX on February 1, 2021
- Cyclopharm shares are up 3.06 per cent, trading at $3.03
Cyclopharm (CYC) has completed a share placement to investors of approximately 11.5 million new fully paid ordinary shares.
The share placement to institutional and sophisticated investors at $2.60 per share raised $30 million before costs.
The issue price represents a 4.1 per cent discount to Cyclopharm share’s one-month volume-weighted average price prior to the announcement of the capital raising of $2.71.
The placement received support from both new and existing investors, including participation from Australian institutions Perennial Value Management, Investors Mutual and Regal Funds Management.
Funds raised will be primarily used to finance activities to accelerate Cyclopharm’s expansion into the U.S. market, pushing their product Technegas.
Technegas is a gas-like substance inhaled by patients via a breathing apparatus that allows multiple views and tomography imaging under a gamma or single photon emission computed tomography camera for evaluating functional ventilation imaging.
This technology can be used in the diagnosis of pulmonary embolism, as well as asthma, pulmonary hypertension and potentially lobectomies in lung cancer and lung volume reduction surgery.
Additionally, funds will go towards expanding the use of Technegas beyond the pulmonary embolism market, ongoing research and development activities, product and systems enhancement, and working capital.
Following the placement, the company will be conducting a non-underwritten share purchase plan offer to existing eligible shareholders who have a registered address in Australia, New Zealand or the United Kingdom.
This will provide the opportunity to apply for up to $30,000 worth of shares at the same issue price as the placement at $2.60 per share, with the aim to raise up to $1.5 million.
“I am delighted with the very strong responses we received to the capital raising from new and existing investors. This capital raising ensures that we are well positioned to rapidly commercialise in the USA, following USFDA approval,” said Managing Director, James McBrayer.
“Additionally, we will continue progressing our strategic initiatives including the expansion of the use of Technegas beyond the pulmonary embolism market and investing in ongoing research and development activities.”
The placement shares are expected to be issued and commence trading on the ASX on February 1, 2021.
Cyclopharm shares are up 3.06 per cent, trading at $3.03 at 3:20 pm AEDT.