The cash will come from agreements with new institutional investors in Australia, existing institutional investors in the US and a founding member of the Prana. As a result, the company now has $10.2 million in cash to immediately commence its phase IIa trial of PBT2, for which it has received full regulatory approval in Sweden.
The investment involves the purchase of 21.8 million ordinary shares (equivalent to 2.18 million ADRs) at a price of A$0.357 per ordinary share (approximately $2.74 per ADR).
“The proceeds raised in this private offering will fully fund the upcoming phase IIa clinical trial of PBT2 to its conclusion. We are optimistic that this trial will demonstrate the safety and tolerability, as well as the potency and efficacy of PBT2 for the treatment of Alzheimer's disease. We believe that our drug, unlike any currently available Alzheimer's drug, could offer a disease modifying therapy for patients, which is of enormous interest to major pharmaceutical companies,” said Geoffrey Kempler, chairman and CEO of Prana.
The company plans to announce the results of the PBT2 phase IIa trial in the fourth quarter of calendar 2007.