Australian antiviral drug development company Island Pharmaceuticals (ASX:ILA) has announced it has received commitments for a two-tranche placement to existing and new investors to raise approximately $3.5 million at $0.07 per share.
The company said that one new option is attached with every new share issued, 50 per cent expiring within 12 months of issue and 50 per cent expiring within 24 months, subject to shareholder approval. It said that the funds would be used to support the completion of both cohorts of its ISLA-101 PROTECT study in dengue fever, finish due diligence on the galidesivir program, and, if it passes due diligence, acquire and advance the galidesivir program.
Island said the placement is supported by investors who approached the company to offer cornerstone support. These investors include Dr Daniel Tillett and prominent Hong Kong-based fund manager Angus Walker. It also includes Island co-founder Dr Bill Garner, shareholder Jason Carroll and recently appointed non-executive director Chris Ntoumenopolous.
Island’s CEO and managing director, Dr David Foster, said, “This fundraising is an outstanding outcome for Island and places the company in a very strong position to complete the current Phase 2a/b study for ISLA101. It also supports the due diligence campaign for the Galidesivir antiviral therapeutic program and provides the acquisition funding required, should we proceed with the potential acquisition.
"We are delighted to receive extremely strong support from Dr Daniel Tillett and Angus Walker, who see the potential in our programs. We are also grateful to Bill Garner, Jason Carroll and Chris Ntoumenopolous for their participation in this placement. We are now funded on current programs, which takes us through several important inflection points, including all data readouts on our current ISLA-101 Phase 2a/b clinical trial.”
Dr Daniel Tillett commented on his participation, “I have been invested in Island for many years and have been watching the company closely over that time. Island's impressive clinical progress with ISLA-101, along with the recent pipeline expansion into new antivirals, has created a compelling investment opportunity. The ability to leverage historical clinical data to advance overlooked antivirals in areas of great unmet need, combined with the potential value of acquiring two priority review vouchers upon approval, is highly attractive.” said Dr Tillett. “I’m delighted to be able to further support Island and ensure that the company has the financial resources required to fast track the clinical development of their advanced clinical assets.”
