Perth-based biotechnology company pSivida Ltd will raise $3.7 million through a placement to Australian and European investors, to fund development of its macular edema treatment.


The full text of a company announcement is pasted below

Global bio-nanotech company pSivida Ltd is pleased to announce the placement of 14,230,768 million fully paid ordinary shares issued at 26 cents each to raise AU$3.7m before costs to Australian and European investors.

Each share was purchased with two free attaching options at an exercise price of 26 cents and a term of four years. This raising is an interim financing measure prior to the expected closing of the definitive documents with Nordic Biotech Advisors for a AU$5.1m (US$4.0m) corporate investment in pSivida and an AU$28.2m (US$22.0m) investment over time in a "Special Purpose Vehicle" (SPV). The SPV is expected to fully fund pSivida's portion of costs to develop its lead ophthalmic development product, MedidurTM for the delivery of a steroid (fluocinolone acetonide) for the treatment of the chronic eye disease diabetic macular edema (DME). The Company is committed to reducing its cash burn with cost cutting measures to begin at the end of this month.

pSivida is also pleased to announce the reappointment of Dr Roger Aston to the pSivida Board of Directors. Dr Aston is a founding director of the Company and returns to the Board following his departure in November 2005. Dr Aston has more than twenty years experience in the pharmaceutical and biotechnology industries and is a welcome addition to the Board. Dr Aston is also a director of Clinuvel Limited and Halcygen Limited.

"This capital raising places the Company in a stronger financial position with opportunities to accelerate R&D commercial activities, particularly in the area of controlled slow release drug delivery technologies," said Dr Roger Brimblecombe, Executive Chairman and CEO of pSivida Limited. "I am particularly pleased by the reappointment of Dr Aston to the pSivida Board as we move towards significant commercial opportunities in the near term."