01/08/2019 - 12:54

Botanix raises $40m

01/08/2019 - 12:54

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Botanix Pharmaceuticals is set to raise $40 million via a share placement, less than two months after it released studies suggesting its cannabis compound could be used as an antimicrobial to mitigate superbugs.

Botanix raises $40m
Vince Ippolito says the recent release of data from multiple studies has generated interest in its products.

Botanix Pharmaceuticals is set to raise $40 million via a share placement, less than two months after it released studies suggesting its cannabis compound could be used as an antimicrobial to mitigate superbugs.

The company will raise the funds at 21 cents per share, representing a 16.7 per cent discount to its 15-day volume-weighted average price prior to July 29 of 25.2 cents.

Botanix said the placement was underpinned by strong support from US institutional investors.

Argonaut and Bell Potter Securities acted as joint lead managers to the Australian portion of the placement.

The company said the funds would be used to complete phase two studies for its lead acne and atopic dermatitis program, and to progress its first antimicrobial program into clinical studies and undertake supportive studies required prior to phase three studies.

Botanix also appointed Richard Peterson as its chief financial officer and Howie McKibbon as its chief commercial officer, who will be based in the US.

Executive chair Vince Ippolito, said the recent release of data from multiple studies had generated an exceptional level of interest in the company's products.

“This has created an opportunity for the company to further understand the applications of cannabinoids in skin diseases,” he said.

“The support from leading US institutional investors with significant dermatology and pharmaceuticals investment track records enables Botanix to advance to the next level.”

In June, Botanix’s share price doubled within the space of a week, following the release of the studies which detailed the antimicrobial potential of one of its cannabis compounds.

Shares in Botanix were down 5.8 per cent to trade at 24 cents each at 2pm AEST.

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