Nedlands-based pharmaceutical company PharmAust Ltd will raise $2.5 million for additional working capital through a share purchase plan and placement to eligible shareholders.
Nedlands-based pharmaceutical company PharmAust Ltd will raise $2.5 million for additional working capital through a share purchase plan and placement to eligible shareholders.
The company recently made a loss of $2.7 million for the financial year ended June 30, 2006, a 15 per cent improvement on the previous financial year's loss of $3.2 million, despite doubling its revenue.
The full text of a PharmAust announcement is pasted below
PharmAust Limited is pleased to announce that it has established terms for a fully underwritten Share Purchase Plan and Placement to raise $2.5 million.
Melbourne-based Chimaera Capital Markets will underwrite the $1.25 million SPP and the conjunctional placement of $1.25 million of shares on a pari passu basis to the SPP, both issues being at 10c per share.
The purpose of the SPP is to give Eligible Shareholders of PharmAust Limited the opportunity to increase their shareholdings to a marketable parcel without the costs of brokerage, and to provide working capital for PharmAust Limited.
Under the SPP, PharmAust shareholders on the register at 5pm on October 9 will be eligible to apply for up to $5,000 of ordinary shares, for a subscription price of 10 cents per share.
Full details of the SPP and an Entitlement and Acceptance Form will be sent out to all eligible shareholders.
The total to be raised under the SPP is capped at $1.25 million. Accordingly, all Eligible Shareholders who wish to apply for shares under the SPP are encouraged to return their Entitlement and Acceptance Forms promptly.
The closing date for the SPP is set for 5.00pm WST on Friday 27th October 2006 (Closing Date), unless extended at the discretion of the directors of PharmAust Limited, and allotments will be made in order of receipt of fully completed Entitlement and Acceptance Forms and the subscription price payable until the amount to be raised is reached.
The conjunctional Placement of $1.25 million will also be completed with shares offered at the same price as the offer under the SPP. The terms and conditions of the Share Purchase Plan will be made available on PharmAust Limited's website at www.pharmaust.com.
PharmAust Managing Director, Dr Paul D'Sylva said: "These raisings secure sufficient funding to allow the Company to continue current growth and will allow several key transactions, which are currently in progress, to be concluded. The Board looks forward to creating significant shareholder value over the next 12 months."
