Exopharm (ASX:EX1) has received firm commitments from institutional and sophisticated investors to raise $12 million, double the minimum raise amount. Image: Getty
Health & Biotech
Melbourne biotech company Exopharm (ASX:EX1) has received firm commitments from institutional and sophisticated investors to raise $12 million, double the minimum raise amount.
The 16.7 million new shares will be priced at 72c, three times last year’s 24c level, as the world wakes up to the potential of therapeutic potential of exosomes, nanoscopic extracellular vesicles secreted by cells.
The proceeds of the share placement will be used to accelerate Exopharm’s activities and support future potential partnerships and licenses, following the company’s recent partnership with the Finnish Red Cross Blood Service.
“This additional funding provides an operational runway into CY2022 and supports our partnering efforts,” says chief executive Dr Ian Dixon.
“Potential partners of Exopharm will always assess our financial merits, so this additional funding strengthens our negotiating position.”
Canary Capital acted as lead manager for the placement. The small and micro-cap Sydney investment house has said previously they’re “big believers in the company”.
Some new fund managers joined the share register for the first time, showing that the company is an increasingly attractive investment option even at a share price triple that of last year’s capital raising.
(Perhaps they read Pitt Street Research’s 29-page research report issued last week, declaring that Exopharm was significantly undervalued and could be re-rated by the market. The company’s shares are worth between $2.80 and $4.71, Pitt Street estimated).
“We are encouraged by such strong demand for the placement from both existing and new institutional and sophisticated investors,” Dr Dixon says.
“The proceeds from the capital raise together with the 2021 R&D rebate later in the year will put the company in a strong financial position to realise its strategy of becoming a world leader in exosome medicines through the commercialisation of its technology platforms and the development of new exosome medicine.”
This article was developed in collaboration with Exopharm, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
