Local tech firms raise $13m

20/06/2018 - 15:34

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Two local biotech companies have announced capital raisings today, with Botanix Pharmaceuticals tapping investors for $8 million, while Roto-Gro International has boosted its coffers with a $4.5 million raising.

Local tech firms raise $13m
Botanix is a medical dermatology company.

Two local biotech companies have announced capital raisings today, with Botanix Pharmaceuticals tapping investors for $8 million, while Roto-Gro International has boosted its coffers with a $4.5 million raising.

Medical dermatology company Botanix has issued 72.7 million shares at 11 cents each, representing an 8.3 per cent discount on the last closing price.

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

The company said the proceeds would be used primarily to advance its BTX 1204 product into the second phase of a clinical trial.

“Botanix is now in a strong position with two fully funded phase two ready programs moving into the clinic, multiple pipeline products progressing into phase 1b patient studies in the near term and a novel technology platform,” executive director Matt Callahan said.

“There are no Nasdaq-listed dermatology companies with two phase two programs in development and such a deep pipeline of earlier stage programs.

“Each of these assets can generate significant shareholder value in the near term.”

Shares in Botanix were down 4.17 per cent at 12 cents each today.

Meanwhile, medicinal cannabis-focused Roto-Gro has issued 12 million shares at 38 cents each, with Barclay Wells and Emerald Capital Australia acting as joint lead managers.

Managing director Michael Carli said the funds would allow the company to fast-track a number of acquisitions.

“The level of interest and support from new and existing investors is a testament to the unique opportunity RotoGro presents in revolutionising the future of agriculture,” he said.

“Our aspirations to be a leading lawful cannabis and perishable food grower, drawing on our patented and patents-pending technology and proprietary growing management software, sets us apart from all other methods of growing.

“The proven yield increases, and lower operational costs provide for maximum profits and socially responsible returns to our investors.”

Shares in Roto-Gro finished up 3.45 per cent at 45 cents each today.

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