Patrys (ASX:PAB) has announced it has secured commitments to raise approximately $3.2 million through a share placement that drew strong backing from both new and existing investors.
The capital injection arrives at a critical moment for the company as it works to advance its injectable quetiapine program into human trials and strengthen its financial footing in a challenging market environment.
The placement involves the issue of roughly 133 million fully paid ordinary shares at $0.024 each, a price reflecting a modest discount to recent trading levels. Investor demand underscored growing confidence in Patrys’ focus on addressing a significant unmet need in delirium treatment and its progress toward clinical execution.
Chief executive Dr Samantha South emphasised the importance of the milestone, stating, “We are very pleased with the strong support for this Placement from both existing and new investors, particularly given the prevailing market challenges. This funding strengthens our balance sheet and positions Patrys to progress execution of a Phase 1A clinical trial, required for our pre-IND filing with the FDA, representing an important step forward for the program.“
The newly raised funds are earmarked for a series of near-term objectives that are central to the company’s development strategy. These include initiating a first-in-human Phase 1A clinical trial, advancing manufacturing readiness for the drug product, and continuing regulatory engagement with the US Food and Drug Administration. The company will allocate resources to maintain and expand its intellectual property portfolio and support broader operational needs.
As part of the transaction, investors will receive additional incentives in the form of options, while directors have indicated their intention to participate further, subject to shareholder approval. The placement is expected to settle in late April, with a shareholder meeting anticipated in early June to approve associated securities and director participation.
The deal was managed by Templar Corporate, which will receive fees and options as part of its role in the capital raising.