PYC Therapeutics (ASX:PYC) has announced a pro-rata accelerated non-renounceable entitlement offer to eligible shareholders to raise $146 million.
The company said the proceeds will be used to fund the progression of its pipeline of first-in-class drug candidates for patients with unmet needs through critical human data read-outs.
The programs include late-stage trials for PYC's candidate for a blinding eye disease, mid-stage trials for a second candidate for blinding eye disease, early-stage trials for the company's candidate for polycystic kidney disease, and first-in-human trials for its Phelan-McDermid Syndrome drug program.
PYC said the offer is expected to fully fund all four programs through the financial year 2027.
The offer is a one for four with new shares issued at $1.25 per share, representing a 2.7 per cent discount to the last traded price.
PYC said it has entered into a binding underwriting agreement with existing large shareholders to subscribe for a minimum of $70 million worth of new shares if the retail entitlement offer creates a shortfall. The minimum amount the company will raise through the offer is $105 million.
PYC CEO Dr Rohan Hockings said, “This extension to the Company’s funding runway enables us to deliver clinical efficacy data for our drug development programs simultaneously. The Company now has scope to deliver substantial patient-impact across multiple high-value indications that lack approved treatment options today."