ChemGenex Pharmaceuticals, an Australian biopharmaceutical development company, has completed a private placement to sophisticated and institutional investors in Australia and internationally to raise A$10m.
ChemGenex placed 23.25 million fully paid ordinary shares in the company at an issue price of A$0.43 per share to raise gross proceeds of A$10m.
In addition to the placement, ChemGenex intends to offer eligible ChemGenex shareholders the opportunity to participate in a non-renounceable rights issue to acquire one new share for every 14 shares held to be issued at the same price as the placement, being A$0.43 per share, to raise up to an additional A$7.4m.
The placement was anchored by substantial commitments from existing significant shareholders including GBS Venture Partners, the international pharmaceutical company Merck Serono, and Orbis Funds Management. The current investment is reported to make Orbis Fund Management a substantial shareholder in the company.
The aggregate raising of a potential A$17.4m will be applied to complete the clinical development of omacetaxine in T315I positive chronic myeloid leukemia (CML), complete the regulatory filings in the US and Europe for omacetaxine in T315I positive CML, progress pre-commercialization and partnering discussions concerning omacetaxine and prepare for the commercial launch of omacetaxine in the US.
Greg Collier, CEO and managing director of ChemGenex, said: We are delighted to have completed this capital raising in a difficult financial climate, and look forward to further consolidating our financial position through the rights issue. We look forward to completing the regulatory submissions for omacetaxine in the US and Europe over the coming months, and to preparing for the commercial launch of omacetaxine.