Clinical dermatology company Botanix Pharmaceuticals (ASX:BOT) has secured commitments to raise $10 million that will be used to progress its lead development program.
The company said new and existing institutional and sophisticated investors have committed to a placement of up to approximately 111.11 million new fully paid ordinary shares at $0.09 for each share.
The issue price of A$0.09 represents a discount of 10 per cent to the last closing price on 31 March 2023, before the company entered a trading halt.
The proceeds will be used to progress the development of Sofpironium Bromide gel (15 per cent), including costs associated with completing FDA review, manufacturing, satisfying milestone payments and preparing for commercial launch in the US, as well as general working capital purposes and costs of the offer.
Botanix executive chairman, Vince Ippolito said, “We are very pleased to announce this placement to institutional investors who have actively researched and engaged with Botanix and are prepared to invest at this pivotal point in the Company’s development.
"We are particularly pleased by the support from new institutional investors as they take the opportunity to join Botanix on its journey towards FDA approval and commercialisation of our lead product, Sofpironium Bromide for primary axillary hyperhidrosis.”
Botanix said it would not be undertaking a shareholder placement plan (SPP) in conjunction with this institutional placement. It conducted an SPP in late 2022.