ASX-listed pharmaceutical Botanix (ASX:BOT) just raised $15 million in equity from more than 15 new institutional investors to develop an acne treatment.

Shares in the medical cannabis company were down more than 7 per cent to 13c by 12.45pm AEDT Monday — but still ahead of the equity raising price of 11c a share.

Matthew Callahan, Botanix’s Executive Director, says the exceptional support for the oversubscribed equity raising is a clear endorsement of Botanix’s business strategy.

“Our recent results validate and support the broader utility of Botanix’s product portfolio, given the strong evidence of the role synthetic cannabidiol can play in inflammation,” he says.

The capital will help Botanix fast track clinical development of the acne treatment in the US.

Last month Botanix announced results from a study which showed its treatment for acne, BTX 1503, was “very effective” at reducing inflammation.

Botanix shares over the past six months.
Botanix shares over the past six months.

Rodney Sinclair, Professor of Dermatology at the University of Melbourne and Director of Dermatology at the Epworth Hospital, says physicians and patients are always on the lookout for effective new treatments for acne.

“The problem with most of the currently available acne treatments is skin irritation and the time they take to have an effect,” he says. “BTX 1503 shows great promise to be a significant new therapy for treatment.”

Bell Potter Securities Limited and Argonaut Securities Pty Ltd were joint lead managers to the placement. Vesparum Capital acted in an independent capital markets advisory role for Botanix.

 

This article first appeared on Business Insider Australia, Australia’s most popular business news website. Follow Business Insider on Facebook or Twitter.

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