The shell of former wound dressing biotech Factor Therapeutics has raised $417,000 as it scrounges the industry for new opportunities.

Factor (ASX:FTT) immediately halted all work it was doing when Phase II trial results from its venous leg ulcer wound dressing treatment VF001 showed it had no benefit.

CEO Dr Rosalind Wilson recently told Stockhead it could not be considered a failed trial as it had produced unambiguous results that provided “a clear basis for decision-making” — that decision being to cease all research and development and scale the company down.

It announced this morning a $417,000 capital raise, with new and existing sophisticated investors buying 208.5 million shares at 0.2c a pop, with stockbroker Taylor Collison acting as the lead manager.

Dr Cherrell Hirst, Factor chairman, said the company was actively looking for new opportunities in the healthcare and biotech sectors.

“In the past few months the board has worked diligently to close out the company’s previous activities and minimise costs; and to identify and assess promising new opportunities, including technology acquisitions,” she said.

“These additional funds will ensure the company is in a strong negotiating position to maximise value for our shareholders.”

Shares fell 25 per cent to 0.3c.

Factor (ASX:FTT) shares over the past six months.