- Patrys (PAB) will be undertaking a $7.8 million capital raising, consisting of a placement and a fully-underwritten rights issue
- The placement will issue more than 71.4 million shares to institutional investor Territory Funds Management to raise $2.5 million
- The remaining $5.3 million will be issued via a fully-underwritten, non-renounceable rights issue with one new share to be issued for every 12 held
- Patrys will use the money to begin a formal development program for PAT-DX3, further research and development studies, and expand its business development
- Shares in Patrys are down 9.52 per cent and are trading at 3.8 cents
Patrys (PAB) will be undertaking a $7.8 million capital raising, consisting of a placement and fully-underwritten rights issue.
The company has received firm commitments from institutional investor Territory Funds Management for the issue of just over 71.4 million fully-paid ordinary shares.
The shares will be priced at 3.50 cents, raising proceeds of $2.5 million.
The issue price represents a 17.8 per cent discount to the 10-day volume-weighted average price of 4.26 cents on October 27.
Shares are expected to settle on November 5 before being allocated and issued on November 8.
The remaining $5.3 million will be issued via a fully-underwritten, non-renounceable rights issue with one new share to be issued for every 12 held.
Shareholders who subscribe for the full entitlement have the right to increase their shareholding, given any shortfall.
Shares will settle on December 3, be allocated on December 6, and begin trading on the ASX on December 7.
Patrys will use the money from both the placement and rights issue to begin a formal development program for PAT-DX3, further research and development studies, and expand its business development activities.
“The capital raising will enable Patrys to formally add a second deoxymab asset to its development pipeline,” Managing Director and CEO Dr James Campbell said.
“Based on the promising data we have seen for PAT-DX3 since we announced it 12 months ago, we believe there are a range of very attractive potential applications for this deoxymab that will significantly expand opportunities for internal development and partnering which we believe have the potential to generate significant shareholder value.”
Shares in Patrys were down 9.52 per cent and were trading at 3.8 cents at 12:25 pm AEDT.