Perth headquartered biotechnology company Stirling Products Ltd has finalised a $1.3 million placement to US institutional investor, Indus Capital Partners, LLC, to fund the further development of R-salbutamol as a growth agent and in obesity applications
Perth headquartered biotechnology company Stirling Products Ltd has finalised a $1.3 million placement to US institutional investor, Indus Capital Partners, LLC, to fund the further development of R-salbutamol as a growth agent and in obesity applications.
The private placement consists of approx 11.3 million shares at 11.5 cents each with approx 5.6 million options exercisable by 31st Dec 2007 at 20 cents.
The placement is managed by Hunting Party Securities in the US.
Indus Capital is an Asian-focused international hedge fund manager founded in 2000 with over US$4 billion (A$5 billion) under management.
Stirling Products is an animal health company concerned with the development and commercialisation of a range of metabolic modifiers, primarily growth agents for the global livestock industry.
The company relisted in February 2004 and is developing its lead product R-salbutamol as a safe and effective growth related product.
At 1045 WST, shares in Stirling Products were at 11.5 cents.
Below is the edited announcement:
STIRLING FINALISES A$1.3M PLACEMENT TO INDUS CAPITAL PARTNERS, LLC.
A$1.3 million to be raised through placement to US institutional investor, Indus Capital Partners, LLC.
Funds raised will be used for further development of R-salbutamol as a growth agent and in obesity applications.
The Directors of Stirling (ASX:STI) are pleased to announce the subscription by major US institutional investor Indus Capital Partners, LLC., to a private placement of 11,276,494 fully paid ordinary shares at A$ 0.115 with 5,638,247 free attaching listed options exercisable by 31st December 2007 at A$ 0.20. The placement managed by Hunting Party Securities in the US, introduces a high profile international institution to the Stirling share register.
Indus Capital is an Asian-focused international hedge fund manager founded in 2000 with over $US 4 Billion under management and offices in New York, London, Tokyo and Hong Kong. Indus Capital Partners, LLC., are recognised as one of the most respected investment firms in its field.
Dr Calvin London CEO & Managing Director of Stirling said "the Board believed that a capital raising was appropriate so that the development of our technology platforms associated with livestock growth agents and obesity in companion animals and potentially humans could continue as planned. The greatest value for our shareholders lies in advancing these applications as rapidly as possible."
Settlement of the placement will occur in two stages with 9,008,648 shares and 4,504,324 options issued immediately pursuant to the 15% placement limit under listing rule 7.1 and will rank equally with company's existing ordinary shares and options. The second tranche of 2,267,846 shares and 1,133,923 options are subject to shareholder approval at a general meeting. A notice of meeting will issue to shareholders in due course.
