Phylogica in $9.1m recapitalisation

Shares in biomedical technology business Phylogica were up 13 per cent today after the company announced it had completed a $9.1 million recapitalisation.

The new investment will come via two tranches of capital raisings.

The first will be a $4.4 million placement of 147 million shares under the company’s existing placement capacity.

The latter part will be a 157 million share placement, which will need shareholder approval at the business’s November annual general meeting.

That will raise a further $4.7 million.

Both were at a share price of 3 cents.

Phylogica owns a catalogue of peptides, which form proteins, that the business hopes will be used for drug development and to progress a new drug delivery system.

The company said it had successfully completed proof of concept in 2018, with clinical validation the next step.

In the coming year, initiating enabling studies to lodge an application with the United States Food and Drug Administration will be a priority, Phylogica said.

It comes about five months after Alan Tribe, who formerly owned an Ikea franchise, became chairman of the business and lifted his stake to 20 per cent.

Then-chief executive Stephanie Unwin was replaced by Rohan Hockings on the same day.

Phylogica shares were trading at 3.4 cents each at the close of trade.