Biotron (ASX BIT) has announced it has entered an Option Underwriting Agreement with Gleneagle Securities.
The company said Gleneagle will underwrite any shortfall arising from 103,098,597 listed options exercisable at $0.05, with an expiry date of 12 December 2019 (ASX:BITOB).
"The Agreement includes customary terms and conditions for an underwriting, including an underwriting fee of 5% and with the principal commercial termination events being a 7% fall in the S&P ASX 200 Index at any time after the date of the agreement or the volume weighted average price of BIT shares calculated over five trading days after the date of this Agreement being less than $0.04," it said.
Biotron said the underwriting will, subject to the terms of the agreement, ensure that approximately $5.1 million will be added to its balance sheet.
The company said the funds raised will enable it to advance the development of promising compounds in its proprietary compound library that have been shown to have activity against serious viral diseases.
"The Company’s Hepatitis B virus (‘HBV’) program is showing particular promise," it said.
"The HBV therapeutic space is currently very active within the pharmaceutical and biotech industries, with significant investor interest in the search for and development of effective HBV treatments. While Biotron’s work on its HBV compounds is preclinical, the data from these recent studies further validate Biotron’s approach to antiviral drug development and may provide the Company with an early stage development opportunity with an appropriate partner. Proceeds from exercise of the Options will allow the more rapid development of this exciting new program."