Medical dermatology company Botanix Pharmaceuticals (ASX:BOT) has announced it has received commitments to raise A$7.4 million via a oversubscribed placement to existing and new institutional and sophisticated investors.
The placement comprises the issue of up to 134,296,526 shares at an offer price of A$0.055 per share.
The offer price represents a 13.3 per cent discount to the 20-day volume weighted average price (calculated from 30 March 2017). Shares issued under the Placement will be fully paid ordinary shares in the capital of the Company.
The company confirmed the placement will be executed via two tranches.
The first tranche of A$5.4 million will involve the issue of 97,932,890 shares pursuant to the company’s existing placement capacity under ASX Listing Rules 7.1 and 7.1A.
The second tranche of A$2.0 million will involve the issue of 36,363,636 shares and is subject to shareholder approval to be sought at a Botanix Extraordinary General Meeting, expected to be held on or around Monday, 15 May 2017.
Botanix said the funds raised under the placement provides financial capacity for it to execute on its product development programmes and broader commercialisation strategy. Specifically, the advancement of the clinical development of Botanix’s dermatology products and to pursue the strategy of commercialising the Permetrex technology.
In conjunction with its upcoming Phase 1a trial of BTX 1503, which is scheduled to commence in the coming weeks, the company said it expects to fast-track the clinical development of BTX 1204, which is a topical treatment for moderate to severe atopic dermatitis.
Botanix’s executive director, Matthew Callahan, said, “The overwhelming support for the Placement is a clear vote of confidence from the institutional and sophisticated investment community in relation to Botanix’s business strategy, speed of clinical development and unique focus on using synthetically derived cannabidiol and the Permetrex delivery technology in the novel treatment of dermatology conditions.
“These funds will be used to accelerate our clinical programs for acne and dermatitis and to also pursue the strategy of commercialising PermetrexTM, which should allow the Company to begin to generate revenues whilst still in the clinical stages of product development.”