Clinical dermatology company Botanix Pharmaceuticals (ASX:BOT) has closed the first tranche of its up to $7.5 million placement to new and existing institutional and sophisticated investors for the placement of up to 113,636,364 fully paid ordinary shares.
The company has issued $7 million worth of new shares to investors along with a free attaching unlisted option for every two new shares issued to them under the placement.
Each new option has an exercise price of $0.09 and expires 18 months from its date of issue.
The company said the second tranche of the placement is an issue of new shares to Botanix directors who have committed to subscribe for a total of $0.5 million as part of the placement.
The company said the proceeds from the placement will be used to progress its lead development program, Sofpironium Bromide gel (15 per cent), including costs associated with filing for FDA approval, preparing for commercial launch in the US, enhancing quality and manufacturing capabilities, as well as general working capital purposes.
Botanix president and executive chair Vince Ippolito said, “We are pleased to complete this first tranche of the Placement, just as we finalize our work to file for FDA approval for Sofpironium Bromide this quarter."