Shares in Perth-headquartered pSivida Ltd fell more than 5 per cent today after the global bio-nanotech company announced that its non-renounceable rights issue had closed well short of the original fund raising target.

In May, the company announced it was conducting a one-for-eight rights issue at 60 cents per share to raise up to $29 million through the issue of up to approximately 48.3 million new ordinary shares at 60 cents each.

However, only $6.3 million before costs has been raised with the issue of approximately 10.5 million shares, representing a subscription of 22 per cent of the total shares available under the rights issue.

The company noted that U.S. shareholders who were ineligible to participate in the rights issue own 45 per cent of the shares on issue.

The company took the unusual step of not placing the shortfall subscription shares due to current U.S. market conditions.

Janney Montgomery Scott LLC had previously been appointed to place the shortfall in the U.S.

The proceeds will be used to fund clinical trials of its Medidur product for treating certain eye diseases and its lead BioSilicon product BrachySil, which is being developed for use in the treatment of pancreatic cancer.

The company also announced Dr. Paul Ashton will present on Day 1 of the Wall Street Analyst Forum in New York today, providing an update on the company's progress to an audience of predominantly buyside/institutional investors and sellside/independent research analysts.

At market close, shares in pSivida were down 3.5 cents to 57 cents.

Below are the full announcements:

 

Global bio-nanotech company pSivida Limited (NASDAQ:PSDV, ASX:PSD, Xetra:PSI) today announced that the Company's Non-Renounceable Rights Issue has closed.

Proceeds of AU$6,309,487 (US$4,795,209) before costs has been raised through the issue of 10,515,811 new ordinary shares at an issue price of AU$0.60 per share.

This represents a subscription of 22% of the total shares available for subscription under the Rights Issue, although a large number of shareholders reside outside Australia and were therefore ineligible to participate.

Currently, U.S. holders who were ineligible to participate, own approximately 45% of the Company. Eligible Directors of the Company exercised their right to subscribe for ordinary shares.

Notwithstanding that Janney Montgomery Scott LLC were appointed to place the
shortfall in the U.S., the Company has elected not to place the shortfall subscription shares due to current U.S. market conditions.

"The Directors and I are pleased that a number of shareholders have joined with eligible Directors to take up their rights in the current market conditions" said Mr. Gavin Rezos, CEO of pSivida Limited.

pSivida recently announced:
- regulatory approvals to expand MedidurTM clinical trials to the UK, Canada and India;
- regulatory approval for the commencement of a BrachySilTM phase IIa pancreatic cancer trial in hospitals in London and Singapore;
- new trial centres in the Philippines and Taiwan for the phase IIb trial of BrachySilTM in addition to the existing five centres currently active in Singapore, and centres in Vietnam and Malaysia;
- a breakthrough discovery by wholly owned subsidiary, AION Diagnostics Inc., into the imaging properties of BioSiliconTM that allows it to be visualised on four key imaging modalities; x-ray, ultrasound, CT and MRI.
The ordinary shares to be issued under the entitlement and additional share offers are expected to commence trading on the Australian Stock Exchange on the 19 June 2006.

 

pSivida to present at the Wall Street Analyst Forum


Boston, MA. and Perth, Australia - Global bio-nanotech company pSivida Limited (ASX:PSD, NASDAQ:PSDV, Xetra:PSI) is pleased to announce that Dr. Paul Ashton will present on Day 1 of the Wall Street Analyst Forum in New York on Wednesday, June 14th. Dr. Ashton will be providing an update on the Company's progress to an audience of predominantly buyside/institutional investors and sellside/independent research analysts.

The Wall Street Analyst Forum will be held over three days at the Princeton Club, New York City, and will feature presentations from some of the world's most innovative and successful Biotechnology and Specialty Pharma companies.

Dr. Ashton will be making his presentation at 11:50am (US. EDT) or 11:50pm (Aust. WST). A webcast of Dr. Ashton's presentation can be viewed by clicking on the link below:

http://www.investorcalendar.com/CEPage.asp?ID=104923

This announcement does not constitute an offer of any securities for sale or the solicitation of an offer to buy any securities