Noxopharm (ASX:NOX) has announced a $7.9 million capital raise its says will go towards progressing its oncology programs as well as its recent move into infection.
It said the 1 for 2.5 pro-rata entitlement offer of new fully paid ordinary shares will be at an offer price of $0.13 with participating shareholders to receive 1 new $0.30 three-year option for every three new shares purchased.
Canaccord Genuity is the lead manager and underwriter to the offer.
The company said the funds will go towards the preparation for commencement in early 2021 of the DARRT-2 Phase 2b clinical trial of Veyondae in late-stage prostate cancer patients, completion of the LuPIN Phase 2 trial, as well as the initiation of a study testing the ability of Veyonda to block the development of septic shock syndrome in patients with COVID-19.
According to CEO Graham Kelly, “Noxopharm is looking at an exciting future, and this capital raise is designed to underpin that future in 3 main ways.
“The first is to secure the oncology opportunities. Recent positive results from our DARRT and LuPIN programs give us the confidence that Veyonda is set to become a powerful new treatment option for patients with late-stage prostate cancer. Our commercialisation goal is Phase 2 data, with the proposed Phase 2b DARRT-2 trial and the current Phase 2a LuPIN-1 trial intended to fulfil that goal.
“The second is the potential of Veyonda in the treatment of septic shock in COVID-19 patients. We didn’t seek this opportunity, but it has landed in our lap and we intend to meet the opportunity. The emerging possibility that over-active STING responses are causing deaths and long-term inflammatory sequelae in adults and children suffering COVID-19 disease, puts Veyonda as a front-line prospect given its potent ability in blocking the STING signalling pathway.
“The third is the opportunity to work closely with Canaccord Genuity, an international investment bank with all the resources that brings, and to focus on building a supportive share register.”