- Australian drug development company Noxopharm (NOX) has finalised a $23 million placement to further fund its clinical studies
- Funds will be used to propel Veyonda phase two clinical trials and complete research on patients experiencing COVID-19 related lung dysfunction
- 42,592,592 shares were offered to professional, institutional and sophisticated investors at 54 cents each
- Settlement is expected on December 9, 2020, with news shares to be issued the following day on 10 December 2020.
- The market responded tepidly to the announcement as Noxopharm shares trade 6.25 per cent lower at 60 cents
Australian drug development company Noxopharm (NOX) has finalised a $23 million placement to further fund its clinical studies.
42,592,592 shares were offered to professional, institutional and sophisticated investors at 54 cents each.
Funds will be used to drive second stage clinical trials of its cancer treatment drug Veyonda and further research on European patients experiencing COVID-19 related lung dysfunction.
Veyonda can be used to treat some severe respiratory conditions relating to septic shock. These conditions are identified as key issues for critical COVID-19 patients.
According to the company, the placement will strengthen Noxopharm’s balance sheet and provide a runway for a series of critical clinical review points in 2021.
Settlement is expected on December 9, 2020, with news shares to be issued the following day on 10 December 2020.
Noxopharm CEO Dr Graham Kelly says the support from new and existing investors demonstrates a shared vision in the potential of the technology.
“That vision is to see Veyonda become the drug of choice to restore cancer eradicating immune function to tumours,” he said.
“If Veyonda proves to be the answer we believe it to be, then the face of cancer therapy is set to change in a dramatic way,” he continued.
New shares issued under the placement will rank pari passu with the Company’s existing fully paid ordinary shares upon issue.
The placement is is not subject to shareholder approval.
Noxopharm shares are down 6.25 per cent and trading at 60 cents each at 10:42 am AEDT.