Clinical-stage biopharmaceutical company Dimerix (ASX:DXB) has announced a $20 million capital raise with commitments from institutional, sophisticated and professional investors via a two-tranche placement of approximately 100 million new shares.
The company said the placement was led by institutional investor Andrew Chapman’s Merchant Fund Management (Merchant), which has also subscribed for $6 million. The company’s major shareholder, Peter Meurs, also committed $3.5 million towards the placement.
Dimerix also announced it will launch a Share Purchase Plan (SPP) that will allow existing eligible shareholders to each apply for up to $30,000 worth of shares at the same issue price under the placement ($0.20) to raise a further $2 million.
The company said the combined proceeds will be used to fully fund the DMX-200 Phase 3 program in Focal Segmental Glomerulosclerosis (FSGS) through to first interim analysis point and a pathway to provide sufficient additional capital through to marketing approval.
“We are very pleased with the outcome of what has been a highly successful, and oversubscribed, capital raising for the Company. We welcome the Merchant Group as a major shareholder and appreciate the strong participation from other new and existing shareholders. The interest in this raise reflects the quality of the Dimerix assets, including the exciting potential from its three Phase 3 clinical programs. We are also pleased to offer existing shareholders the opportunity to participate via the SPP,” said non-executive chairman Dr James Williams.
“The Company will emerge from this capital raise with a substantially strengthened balance sheet, putting us in a great position to deliver on the Dimerix pipeline, including the Phase 3 programs in FSGS as well as in COVID-19 patients with respiratory complications. We look forward to reporting on our progress in due course,” added CEO and managing director Dr Nina Webster.