pSivida to raise $US16m

Biotech company pSivida has released details of its $16 million capital raising which will be used to advance its drug products which treat eye diseases.

In a statement today, pSivida, which is dual-listed on the ASX and NASDAQ, will offer 4 million common shares at $US4 each to raise $US16 million, with the underwriters granted an option to purchase an additional 440,000 shares.

pSivida is headquartered in Massachusetts in the United States, but was formerly based in Perth.

Northland Securities and NYSE-listed Ladenburg Thalmann Financial Services have been engaged as joint book-running managers for the offering.

The news sent pSivida shares up 4.5 per cent to $6 each at 12:15pm.

pSivida has experienced recent volatile trading in its shares on the ASX, with the price surging by 37.4 per cent since mid-December to a record high of $6.65 per share on January 5, on the back of positive clinical trial results and plans to file for marketing approval of its Medidur drug, which is used for chronic non-infectious uveitis of the eye.

However, its share price quickly fell to $5.74 each as of the close of trade yesterday.

The offer is expected to close on January 12.