Patersons backs Eastland $2m raising

Eastland Medical Systems plans to raise more than $2 million, partly underwritten by Patersons Securities, to fund the final step of its anti-malaria treatment project.

The Perth-based company said it will carry out a one-for-two rights issue with shares priced at three cents each. Patersons has agreed to underwrite $1.6 million of the raising.

In addition, Eastland has agreed to place 19.5 million shares at three cents each to clients of Patersons to raise a further $585,000.

The placement is within the company 15 per cent capital raising capacity.

Funds raised will be used to fund the final step, or clinical field trials, of the ArTiMist anti-malaria sublingual treatment project.

Shares in Eastland shed 0.9 cents to 4.5c at 15:49 AEST.