Patrys (ASX:PAB) to raise $7.3M to accelerate product pipeline

• Therapeutic antibody development company Patrys (PAB) has received firm commitments to undertake a $7.3 million capital raise
• The money will be raised through a $2.5 million placement and a $4.8 million non-renounceable rights issue
• To raise the $2.5 million, 125 million shares will be issued to institutional and sophisticated investors at 2 cents each
• The remaining $4.8 million will be raised through a fully underwritten non-renounceable one-for-six rights issue
• Additionally, participants will receive one free attaching option for every three new shares subscribed for, exercisable at 4 cents with expiry three years from issue
• Patrys is set to use the cash to boost its financial position, expand its business development activities, and accelerate the development of its product pipeline
• Company shares are up 4.76 per cent on the market and are currently trading for 2.2 cents each

Patrys (PAB) has received firm commitments to undertake a $7.3 million capital raise.

The money will be raised through a $2.5 million placement and a $4.8 million non-renounceable rights issue.

The company entered a trading halt on November 5 but did not disclose how much it would be raising or what it will use the funds for.

The Placement

To raise the $2.5 million, 125 million shares will be issued to institutional and sophisticated investors at 2 cents each.

This price represents a 4.8 per cent discount to Patrys’ most recent closing price of 2.1 cents on November 6 and a 15.7 per cent discount to the 15-day volume weighted average price.

The Rights issue

The remaining $4.8 million will be raised through a fully underwritten non-renounceable one-for-six rights issue.

Additionally, participants will receive one free attaching option for every three new shares subscribed for, exercisable at 4 cents with expiry three years from issue.

Shares under the placement are expected to be issued on November 16, while the options will be issued at the same time as the settlement of the rights issue on December 15.

Patrys will use the money to boost its financial position, provide funds for the clinical trial of PAT-DX1, expand its business development activities, and accelerate the development of its product pipeline.

“This is a transformational capital raising for Patrys that positions the company to effectively leverage the wide range of therapeutic opportunities provided by its unique deoxymab platform,” CEO and Managing Director Dr James Campbell said.

“The funds are expected to allow the company to complete all the pre-clinical studies and manufacturing required to initiate the anticipated first-in-man studies of PAT-DX1,” he added.

Patrys is up 4.76 per cent on the market with shares trading for 2.2 cents each at 12:51 pm AEDT.