Argenica taps investors for $12m

Shares in Argenica Therapeutics were down by 10 per cent on Friday morning, despite the biotechnology technology announcing it would raise $12 million in order to complete its second phase trial of its ARG-007 drug in ischaemic stroke patients.

As of 10.16am WST, Argenica was trading at 57 cents per share. 

The placement announced follows news on February 28 that the ARG-007 - designed to reduce brain tissue death following a stroke - would be administered at Sir Charles Gairdner and Fiona Stanley hospitals in a nationwide trial.

Argenica also told the market that no adverse events were recorded during the inaugural second phase clinical trial dosing of five acute ischaemic stroke patients.

In February last year, the Nedlands-based company also received a $1.2 million grant from the federal government to develop further avenues into reducing brain tissue death following a brain injury.                                                                                                                       

An ischaemic stoke occurs when blood supply is partly blocked or reduced to the brain, which can result in brain cells dying within minutes due to a lack of oxygen and nutrients.

Under the placement, Argenica said it would issue around 23 million new fully paid ordinary shares at an offer price of 52 cents per share.

This price represents an 18.1 per cent discount to Argenica's last trading price, 63.5 cents, prior to the placement.

Euroz Hartleys and Petra Capital acted as joint lead managers and bookrunners for the placement.

Argenica's managing director Liz Dallimore believed the placement would aid the company moving forward.

"We look forward to providing further updates as we advance the Phase 2 trial, along with providing updates on the results of our preclinical work in other neurological indications," she said.