PharmAust raises $2.4m in placement

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PharmAust (ASX: PAA), a clinical-stage oncology company, says it has received commitments to raise approximately $2.4 million through a placement.

The company said the placement was granted primarily to Australian and Singaporean fund management institutions.

"The strategic value that these new institutional investors bring to the Company’s share register will be significant. Remaining shares from the Placement went to Australian sophisticated investors," it said.

Funds were raised via the placement at $0.12 cents per share - a discount of 7.5 per cent to the 30-Day volume weighted average price of $0.1293 cents per share.

According to executive chairman Dr Roger Aston, “We are delighted with the outcome to the Placement, which has secured interest from new investors who recognise the value in the company. Proceeds will be used to accelerate human clinical trials of monepantel, the company’s lead drug candidate, and strengthen working capital.”

JP Equity Partners acted as lead manager to the placement.