- Paradigm Biopharmaceuticals (PAR) taps investors for $66 million to fund developments into the 2024 calendar year
- The fully underwritten capital raise will comprise a $45.7 million institutional placement and a $20.3 million entitlement offer
- Paradigm Chairman Paul Rennie says having a strong balance sheet will enable PAR to maintain or accelerate the momentum of its phase three clinical trial
- The funds will also go towards new drug application related activities, as well as business and product development
- Paradigm shares resume trade today and are down 27 per cent to trade at $1.45 at 12:46 pm AEST
Paradigm Biopharmaceuticals (PAR) has tapped investors for $66 million to fund developments into the 2024 calendar year.
Emerging from a trading halt, the drug development company revealed details of its fully underwritten capital raise.
Institutional investors have supported a $45.7 million placement and now all shareholders are able to participate in a one-for-15 pro-rata non renounceable entitlement offer of $20.3 million at $1.30 per share.
The issue price marks a 34.5 discount from the last closing price prior to the trading halt of $1.98 per share.
Eligible shareholders subscribing for their entitlement will also be able to apply for additional shares under a top-up facility.
Paradigm Chairman Paul Rennie said he has taken up $300,000 worth of new shares under the entitlement offer.
Following the raise, Paradigm expects to have a pro-forma cash position of $108.5 million, which it said should provide enough funding into the 2024 calendar year.
Specifically, the fresh capital will go towards Paradigm’s phase three clinical program and new drug application related activities, as well as business and product development.
With commercial discussions planned in the future, Mr Rennie said a strong balance sheet is important.
“I would like to thank all institutional investors who participated in the placement,” he said.
“Having a strong balance sheet is important to Paradigm so we can maintain or accelerate the momentum of our Phase 3 clinical trial.”
The company anticipates the release of the first of three readouts for its PARA_OA_008 synovial fluid biomarker study next month.
New shares under the placement are expected to settle on August 18, the entitlement offer will open thereafter on August 22 and close Wednesday, September 7.
Paradigm shares resumed trade today and were down 27 per cent to trade at $1.45 at 12:46 pm AEST.