- Nyrada (NYR) has received firm commitments to raise $11 million amid strong demand from existing and new investors
- Through the placement, the company will issue around 42.3 million new CHESS depository interests (CDIs) at 26 cents each
- The issue price represents a 17.5 per cent discount to the latest trade price and a 15.6 per cent discount to the five-day volume-weighted average price
- The proceeds will fully fund a phase one clinical trial of Nyrada’s cholesterol-lowering and brain injury drug candidates
- Some of the proceeds will also be used to repay the company’s loan from Noxopharm
- In conjunction with the placement, and subject to shareholder approval, Nyrada’s directors and management have agreed to subscribe for CDIs totalling $400,000
- Nyrada shares are down 4.76 per cent, trading at 30 cents each
Nyrada (NYR) has received firm commitments to raise approximately $11 million via a two-tranche placement to sophisticated and professional investors.
Nyrada is a preclinical-stage drug developer specialising in novel, small-molecule drugs to treat cardiovascular and neurological diseases.
Through the placement, the company will issue 42,307,692 new CHESS depository interests (CDIs) at 26 cents each.
The issue price represents a 17.5 per cent discount to the latest trade price and a 15.6 per cent discount to the five-day volume-weighted average price.
The commitments have exceeded Nyrada’s initial target by around $1 million, with strong support from both existing and new shareholders, including institutional investors and the company’s directors.
The drug developer will use the proceeds to fully fund a phase one clinical trial of its cholesterol-lowering and brain injury drug candidates, as well as repay its Noxopharm loan.
Additional capital raised will enable further proof-of-concept studies to evaluate existing drug candidates in other therapeutic areas.
Nyrada CEO James Bonnar said the company’s outlook is “extremely positive” as it continues to make significant progress in both of its key drug development programs, recording encouraging preclinical results.
“We are seeing increased industry interest in our brain injury program, following our recently announced collaboration with the Walter Reed Army Institute of Research and University of New South Wales,” he said.
“This financing will fund out planned entry into phase one human trials for both our promising drug candidates in the cholesterol-lowering and brain injury programs,” James added.
“I would like to thank out exisiting shareholders for their continued support and welcome our new investors to the register.”
More about the placement
Canary Capital and Alto Capital are joint lead managers to the two-tranche placement.
Canary Capital is a boutique investment management and advisory firm located in Sydney, while Also Capital is full-service investment and corporate advisory firm based in Perth.
With a six-per-cent-fee payable on the funds raised, Canary has agreed to take 75 per cent of its fees in shares at the placement price, subject to shareholder approval.
Additionally, Canary has signed a 12-month corporate advisory mandate with Nyrada, which will see it pay Canary a monthly fee of $4000 and issue two million options at 60 cents each, as well as a further two million options at 90 cents with a five-year expiry.
“We are delighted to be working closely with Nyrada,” Canary Capital Executive Director Paul Hart commented.
“Their drug development projects for cholesterol-lowering and brain injury have enormous market potential and the company is backed by a board of the highest calibre to help lead it to success,” he continued.
In conjunction with the placement, and subject to shareholder approval, Nyrada’s directors and management have agreed to subscribe for CDIs totalling for $400,000 in tandem with tranche two.
Nyrada intends to issue both Canary and Alto with two million options, priced at 40 cents each, with a five-year expiry term.
Nyrada shares are down 4.76 per cent, trading at 30 cents at 1:42 pm AEDT.