- Neuren Pharmaceuticals (NEU) receives firm commitments to undertake a $20 million placement
- A total of 9.8 million new fully paid ordinary shares will be issued to institutional and sophisticated investors at $2.05
- Neuren announces it will also undertake a share purchase plan to raise a further $2 million
- Money from the placement and share purchase plan will be used to speed up the development and increase the value of its NNZ-2591 drug
- Neuren is down 5.33 per cent on the market with shares trading at $2.13 at 11:35 am AEST
Neuren Pharmaceuticals (NEU) has received firm commitments to undertake a $20 million placement.
The company entered a trading halt on September 10 but did not disclose how much it intended to raise or for what it would use the funds.
A total of 9.8 million new fully paid ordinary shares will be issued to institutional and sophisticated investors at $2.05.
This price represents an 8.9 per cent discount to Neuren’s close of $2.25 on September 9.
Neuren has also announced it will be undertaking a share purchase plan to raise a further $2 million.
Eligible shareholders will be able to subscribe for shares worth up to $30,000, with shares priced the same as the placement of $2.05.
If subscriptions total more than $2 million, Neuren has the right to scale-back applications at its discretion.
The plan is set to open on September 17 and close on October 1 with shares to be issued and allocated on October 8.
Neuren will use the money to speed up the development and increase the value of NNZ-2591 by undertaking a phase two clinical trial in Prader-Willi syndrome.
CEO Joh Pilcher commented on the placement and how the company will use the funds.
“This additional funding enables Neuren to accelerate and optimise the crystallisation of value for NNZ-2591,” Mr Pilcher commented.
“We are excited as we approach the phase three results for trofinetide in Rett syndrome before the end of the year, but equally excited about the prospects for NNZ-2591 in each of Prader-Willi, Phelan-McDermid, Angelman and Pitt Hopkins syndromes for which we estimate the total number of patients is five times Rett syndrome.”
Neuren was down 5.33 per cent on the market with shares trading at $2.13 at 11:35 am AEST.