- Biotech company Cynata Therapeutics (CYP) aims to raise $5.55 million to strengthen the company’s balance sheet
- Cynata has already completed a $3.55 million placement but aims to raise a further $2 million in a share purchase placement
- Funds will be used to progress clinical development to ensure Cynata is well placed to take advantage of further opportunities
- Cynata is down 22.2 per cent in early afternoon trade and is selling shares for 65¢ each
Biotech company Cynata Therapeutics (CYP) aims to raise $5.55 million to strengthen the company’s balance sheet.
Cynata has successfully completed a $3.55 million placement to a small number of institutional investors. However, it aims to raise a further $2 million in a share purchase placement.
Placement
The company issued approximately 5.9 million new shares at a price of 60¢ per share. This represents a 23.3 per cent discount to the 15-day volume weighted average price to the closing share price as at April 17.
Settlement of the placement is expected to occur on April 23.
Share Purchase Plan (SPP)
Eligible shareholders will be able to apply for up to $30,000 worth of new shares at the same price as the placement.
Although there is a limit of $2 million under the SPP, the Board believes eligible shareholders may want to participate equitably in the overall capital raising and therefore exceeding the $2 million.
Funds
Funds from the placement and SPP will be used to progress clinical development, to ensure Cynata is well placed to take advantage of further opportunities and to strengthen the company’s balance sheet.
Chairman Paul Wotton says this is an uncertain time for investors, markets and companies as the COVID-19 pandemic continues to have an impact across the globe.
“Given the current market volatility and high degree of unpredictability in the economic outlook, the Board has made the decision to strengthen the Company’s balance sheet with a small capital raise designed to provide operational certainty at Cynata,” he said.
Cynata is down 22.2 per cent on the market in early afternoon trade and is selling shares for 65¢ each at 12:31 pm AEST.