- Palla Pharma (PAL) has announced an $18 million capital raise to help lower its debt and take advantage of future growth opportunities
- The healthcare stock entered a trading halt prior to market open on Friday before quickly announcing details of the raise
- PAL is hoping to raise $4 million via a placement to investors as well as $14 million via an entitlement offer which has an institutional and retail component
- Under the entitlement offers, shareholders will be offered two new PAL shares for every nine held as of March 2
- Thirty-six million shares will be issued under the offer, priced at 50 cents each, which represents a 27 per cent discount to its last closing price
- Before today’s trading halt came into effect, shares in Palla Pharma were trading for 68.5 cents
Palla Pharma (PAL) has announced plans to tap investors and shareholders for an extra $18 million in capital via a fundraise.
The healthcare stock entered a trading halt prior to market open on Friday before quickly announcing the details of the capital raise.
The company is hoping to raise $4 million via a share placement to investors. PAL will also raise another $14 million via an entitlement offer, which has both an institutional and retail component.
Under the entitlement offers, shareholders and investors will be offered two new PAL shares for every nine held as of March 2, the record date.
All up, around 36 million PAL shares will be issued at 50 cents each — a 27 per cent discount to the company’s last closing price.
The placement and institutional entitlement offer opened today and will shut on March 1, while the retail entitlement offer is set to open on March 5.
Palla states it’ll use the capital raised from the fundraise to reduce its existing debt and to take advantage of growth opportunities in the U.K. and Europe.
Before today’s trading halt came into effect, shares in Palla Pharma were trading for 68.5 cents.