16/08/2021 - 11:00

Dimerix raises $20m, shares surge

16/08/2021 - 11:00

Bookmark

Save articles for future reference.

Peter Meurs and Perth-based Merchant Group have invested $9.5 million in biopharmaceutical company Dimerix, as part of a broader capital raising to fast-track clinical studies.

Dimerix is planning to develop therapies for chronic kidney diseases. Photo: Louis Reed

Peter Meurs and Perth-based Merchant Group have invested $9.5 million in biopharmaceutical company Dimerix, as part of a broader capital raising to fast-track clinical studies.

Dimerix, which was established in Perth in 2004 and is now based in Melbourne, is developing therapies to treat chronic kidney diseases.

The company is raising $20 million from a share placement to fund a phase three clinical program in focal segmental glomerulosclerosis (FSGS), a disease that involves development of scar tissue in the kidneys.

The raising includes a $6 million investment from Andrew Chapman's Merchant Fund Management and a $3.5 million contribution from Mr Meurs, who is a major shareholder in Dimerix and a former senior executive at Fortescue Metals Group.

Dimerix intends to raise a further $2 million from a share purchase plan.

Its shares were up 47 per cent on the news at 12:39pm AEST, trading at 34 cents each.

The company expects the placement and SPP will fully fund its phase three clinical program in FSGS through to first interim data, as well as provide sufficient capital through to marketing approval.

Dimerix, which also has two phase three trials under way for its COVID-19 treatment, will allocate some of the proceeds to debt repayment and working capital.

Non-executive chairman James Williams said there was strong participation in the raise from new and existing shareholders.

"The interest in this raise reflects the quality of the Dimerix assets, including the exciting potential from its three phase three clinical programs," Dr Williams said.

He is also a director of Perth-based organisations Perron Institute and Linear Clinical Research.

Dimerix managing director Nina Webster said the company would emerge from the raise with a significantly strengthened balance sheet.

It had a cash balance of $5.3 million, as at June 30.

Dimerix will issue 100 million shares through the placement and up to 20 million shares through the SPP.

The offer is priced at 20 cents per share and represents a 15 per cent discount to the company's last closing price of 23.5 cents on August 11.

Participants will be issued with one free, unlisted option for every two shares they subscribe for in Dimerix, exercisable at 40 cents and expiring in July 2024.

The raise is expected to be completed in early October, after the company's annual general meeting on September 27.

Canaccord Genuity is acting as lead manager to the placement.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options