Biotron announces capital raise

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Australian drug development company Biotron Limited (ASX:BIT) has announced a partially underwritten renounceable rights issue to raise up to approximately $1.47 million.

According to the company, net proceeds in conjunction with existing cash reserves will be used for:

  • expanding its Hepatitis B virus (HBV) program, including testing of promising compounds in new models of infection;
  • continued evaluation of additional Biotron compounds against an expanded range of viral diseases including respiratory viruses, Dengue virus, and others; and,
  • commercialisation and negotiation activities, legal fees, travel and personnel costs, and general working capital.

"The offer of securities will be made to eligible shareholders on the basis of one (1) new share and one (1) attaching listed option for every four (4) existing shares held on the record date (16 May 2018) at an issue price of 1.5 cent per share, which represents a 42% discount to the 1 month volume weighted average price (VWAP) of 2.6 cent," said the company.

"Shareholders will be given the opportunity to apply for additional securities in excess of their entitlement, however, allocations are not guaranteed. The issue is renounceable and shareholders will be able to guarantee an increase to entitlements by the purchase of additional rights."