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Cynata Therapeutics (ASX:CYP) raises $15M in placement

Health Care
ASX:CYP      MCAP $42.21M
11 December 2020 12:15 (AEST)

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Biotechnology developer Cynata Therapeutics (CYP) has raised $15 million through an institutional placement.

Proceeds will be primarily used to fund the expansion of Cynata’s clinical development pipeline, process development and further regulatory strategy.

More specifically, Cynata will undertake further clinical trial designs on multiple unmet medical needs and conditions including, idiopathic pulmonary fibrosis, renal transplantation and diabetic foot ulcers.

The $15 million institutional placement was offered to new and new investors at $0.70 per new share.

A one-for-15 $5.5 million non-renounceable pro-rata entitlement offer will also be offered to eligible shareholders following the placement.

New shares will be allotted December 21.

Cynata Chief Executive and Managing Director Dr Ross Macdonald says the endorsement from BioScience Managers provides validation for the platform.

“The capital secured will enable a logical and significant expansion of our clinical development into new indications, essentially doubling the size of our clinical pipeline,” he commented.

“We look forward to initiating the planned studies in the near term and building on the significant progress made to date with the development of our Cymerus platform technology.”

Shares are trading at 75 cents each, down 4.46 per cent following the announcement.

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