Virax raises $3m for Pathway takeover

25/03/2014 - 12:10

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Virax Holdings has completed a $3 million equity placement to sophisticated investors to support its acquisition last week of Pathway Oncology.

Virax executive chairman Wayne Millen.

Virax Holdings has completed a $3 million equity placement to sophisticated investors to support its acquisition last week of Pathway Oncology

Virax secured commitments for the placement of 250 million shares at 1.2 cents each, which represents a 20 per cent discount to its last closing price of 1.5 cents.

Patersons Securities acted as lead manager to the placement, which is subject to shareholder approval at an extraordinary general meeting to be held in May.

It follows Virax last week acquiring Pathway Oncology in a takeover under which the Australia-listed company will gain control of a global licence for emerging anti-cancer technology.

Following the takeover, Virax will control the exclusive licence for a drug known as GGTI-2418 that blocks cancer growth enzymes and specific circuits, which allow cancers to survive and spread.

Perth-based Virax said the deal would transform the group into one of only a few Australian Securities Exchange-listed biotechnology companies with potential for multiple clinical trials in the US as part of the Food and Drug Administration’s investigational new drug program.

Virax executive chairman Wayne Millen said the level of investor support for the placement validated the Pathway acquisition.

The company's shares were trading 0.2 cents lower at 1.3 cents at 12:05pm WST.

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