Perth-based biotechnology company pSivida Ltd will raise $11.5 million through a placement to raise funds for working capital in place of a proposed $5.1 million interim investment from Danish group Nordic Biotech Advisors.
Perth-based biotechnology company pSivida Ltd will raise $11.5 million through a placement to raise funds for working capital in place of a proposed $5.1 million interim investment from Danish group Nordic Biotech Advisors.
Biotechnology company pSivida Ltd will raise $11.5 million through a placement to raise funds for working capital in place of a proposed $5.1 million interim investment from Danish group Nordic Biotech Advisors.
The company will place 50 million shares at 23 cents each with Australian, Eurpoean and American investors, along with two free attaching options at an exercise price of 23 cents with a term of four years.
pSivida had held discussions with Nordic over a proposed $27.8 million special purpose vehicle, funding the company's portion of the costs for developing its diabetic macular edema treatment, Medidur.
However pSivida director of investor relations Brian Leedman told WA Business News the company was involved in licensing negotiations with a global pharmaceutical company, which may impact on the likelihood of it going ahead.
Negotiations with the pharmaceutical company are expected to be finalised by the end of March.
The full text of a company announcement is pasted below
pSivida Ltd is pleased to announce the private placement, subject to shareholder approval, of 50 million fully paid ordinary shares issued at 23c each to raise $11.5m before costs to Australian, European and United States investors. Each share will be issued with two free attaching options at an exercise price of 23c and a term of four years. Placements to U.S. investors were made pursuant to Regulation D under the U.S. Securities Act and placements to non-U.S. investors were made pursuant to Regulation S under that Act. HPC Capital Management Corp., a New York based investment bank, acted as the sole placement agent.
The capital raising was undertaken in replacement of the previously-announced Nordic Biotech Fund interim financing described in the Notice of the Extraordinary General Meeting.
"This capital raising allows the Company to focus on the recently announced exclusive licensing negotiations with a global pharmaceutical company and continue its primary focus on near and medium term opportunities, particularly in the area of controlled slow release drug delivery technologies," said Dr. Paul Ashton, Managing Director of pSivida Limited.
At the Company's General Meeting of Shareholders on February 20th, 2007, shareholders will consider a non-specific resolution that, if approved, would allow the Company to issue the shares and options in this placement.