Firebrick Pharma (ASX:FRE) says it has secured commitments from qualifying investors for approximately $0.2 million through the issue of approximately 3.1 million new fully paid ordinary shares at an issue price of 6.3 cents per share.
The companhy said the placement represented a shortfall on the original target of $1.6 million that was intended to support expanding Nasodine Nasal Spray sales in the US, expanding its distribution and marketing in Singapore and its launch in other South-East Asian, and funding the final development and manufacturing of up to three new Nasodine-brand products for launch into all available markets.
“We will be reviewing our planned expenditures on these projects in light of the placement results; we will also look at alternative funding for them,” said executive chairman, Dr Peter Molloy.
“We decided to use a novel but untested fundraising platform for the placement, and the results speak for themselves about the efficacy of that approach; despite the result, the feedback from prospective investors about Firebrick and the Company’s potential was very encouraging,” said Dr Molloy. “I congratulate those new investors who have now joined us as we continue to grow the international presence and sales of Nasodine, an Australian innovation that the world needs.”