Exopharm (ASX:EX1) says it has received 'firm commitments' from institutional and sophisticated investors for 16,666,667 shares to raise a total of $12 million (before costs) in a placement.
The company said the commitments exceeded its minimum target of $6 million with "strong support" from existing and new shareholders including institutional investors.
Exopharm said the proceeds will be used to accelerate its development activities and support future potential partnerships and licenses, as detailed in recent communications to shareholders.
The company is developing medicines using exosomes from cells.
According to CEO Dr Ian Dixon, “This additional funding provides an operational runway into CY 2022 and supports our partnering efforts. Potential partners of Exopharm will always assess our financial merits, so this additional funding strengthens our negotiating position.”
The placement was completed at a share price of $0.72. Canary Capital acted as lead manager and Alto Capital as a broker.
“We are encouraged by such strong demand for the Placement from both existing and new institutional and sophisticated investors. The proceeds from the capital raise together with the 2021 R&D rebate later in the year will put the Company in a strong financial position to realise its strategy of becoming a world leader in exosome medicines through the commercialisation of its technology platforms and the development of new exosome medicines,” said Dr Dixon.