Patrys announces new issue to fund development of PAT-DX1

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Patrys (ASX:PAB) has announced a fully underwritten and non-renounceable rights issue to raise $4.29 million before costs.

The company said the proceeds will be used to support the development of PAT-DX1 as it progresses towards an anticipated clinical trial in late 2021 or early 2022.

PAT-DX1 is a humanised form of deoxymab 3E10. The company said in a range of pre-clinical cancer models, PAT-DX1 has shown significant ability to kill cancer cells in cell models, human tumour explants, xenograft and orthotopic models.

Proceeds from the issue will also be used to fund broader development of the deoxymab platform iand alternate formats of the technology, as well as funding operations, the costs of the issue, working capital, and other business development and corporate activities.

The issue is on the basis of one new fully paid ordinary share for every three shares currently held at an issue price of $0.012 per share.

The price is a 14.3 per cent discount to the closing price of $0.014 per share on 17 June 2020 and a 18.4 oper cent discount to the 10-day volume-weighted average price to 17 June 2020 of $0.0147 per share. 

Shareholders will also receive one option for every three shares subscribed for and issued, exercisable at $0.024 per option with a term of three years. The company said these options are expected to be listed on the ASX.

Patrys is also offering eligible shareholders the right to increase their shareholding in the company (Share Top Up Facility) should there be any shortfall under the issue.

The issue is fully underwritten by Lazarus Corporate Finance. 

Patrys said its largest two eligible shareholders have agreed to sub-underwrite the issue to approximately $750,000.

Entities associated with chairman, John Read, and CEO, Dr James Campbell, have each committed $50,000 of sub-underwriting. Both have waived any entitlement to receive fees from the underwriter in respect of their sub-underwriting.