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- Drug development company PYC Therapeutics (PYC) is aiming to raise $55 million through an equity raising
- This equity raising consists of a $50 million pro-rata accelerated non-renounceable entitlement offer and a $5 million institutional placement
- Under the entitlement offer, eligible shareholders will be able to subscribe for one new share for every 10 held
- Major shareholder Australian Land has committed to take up 100 per cent of its pro-rata entitlement, representing a $15 million commitment
- In regards to the placement, more than 29.4 million new shares will be issued to sophisticated and professional investors at 17 cents
- PYC will use the funds to speed-up its lead drug development program and expand its development pipeline and U.S. office
- PYC is steady on the market and shares have been trading for 18.5 cents since October 15
Drug development company PYC Therapeutics (PYC) is aiming to raise $55 million through an equity raising.
This equity raising consists of a pro-rata accelerated non-renounceable entitlement offer and an institutional placement.
Entitlement offer
The majority of the funds will be raised through the entitlement offer with PYC looking to raise approximately $50 million.
Under the offer, eligible shareholders will be able to subscribe for one new share for every 10 held.
Major shareholder Australian Land has committed to take up 100 per cent of its pro-rata entitlement, representing a $15 million commitment.
Placement
The remaining $5 million will be raised through the placement, resulting in the issue of 29,412,000 new shares to sophisticated and professional investors at 17 cents.
Both the placement and entitlement offer open today and close on October 21. Shares will then be issued on October 28 and begin trading on the ASX the same day.
PYC will use the funds to speed-up its lead drug development program, expand its development pipeline and U.S. office, general working capital, and offer costs.
“The strength that this transaction adds to our balance sheet positions the company well to execute on the next phase of PYC’s growth,” CEO Dr Rohan Hockings said.
“We are excited to continue the progression of multiple drug programs into clinical development and build a stronger presence in the United States,” he added.
PYC is steady on the market and shares have been trading for 18.5 cents since October 15.