Investors continue to demonstrate their support for PharmAust with binding commitments received for the raising of $2.5m through an oversubscribed placement.
The placement of 30 million shares priced at 8c each, which represents a 20% discount to the 30-day volume weighted average price, was underpinned by a German and Singaporean fund management institution with remaining shares going to Australian sophisticated investors including existing eligible shareholders.
Directors in PharmAust (ASX:PAA) also underscored their belief in the company by subscribing for an additional 1.3 million shares worth a further $104,000 though this is subject to shareholder approval at an upcoming general meeting.
The placement includes one free attaching exercisable at 15c and expiring on 30 April 2025 for every two shares subscribed.
“We are delighted with the outcome to the placement, which has secured interest from new investors who recognise the value in the company,” executive chairman Dr Roger Aston said.
“Proceeds will be used to fund the preparation for upcoming human trials, further manufacture of additional MPL tablets for human and canine trials and to strengthen working capital.”
PharmAust finance director, Sam Wright told Stockhead: “the placement was consistent with the Board’s goal of bringing a greater institutional presence to the company’s share register.”
Recent positive results
The placement follows a positive update last week from its ongoing Phase 1/2 Motor Neurone Disease (MND) clinical trial, which stated that five patients have now surpassed the six-month-mark without any safety issues while one patient has shown no disease progression.
It has also completed the day 28 dosing of the final patient in the second cohort, which are taking double the MPL dosage of those in the first cohort.
Importantly, all twelve patients from both Cohorts 1 and 2 have elected to continue on MPL treatment.
With the dosing of the last patient, the company expects to release results from an interim analysis of preliminary biomarkers and efficacy markers in late May as recommended by the Principal Investigator.
This is expected to allow PharmAust to proceed with the Phase 2 clinical trial with favourable efficacy biomarker results under the interim analysis.
The company will also continue with the MPL dose escalation for Cohorts 3 and 4 during the interim trial analysis to determine the optimum dose level for the Phase 2 trial.
Upcoming catalysts
Completion and results from the fully funded Phase 1/2 Human MND trial. Interim results are expected later this month.
The initial safety & PK data from the Phase 1 MND trials will fast track a Phase 2 human anti-cancer trial with PharmAust previously announcing a Principal Investigator had been identified in the US.
The Phase 2 vet cancer trial is expected to be completed mid 2023 with assay results from 10 x plasma samples expected later this month.
PharmAust is also targeting a corporate outcome this calendar year on the licensing or sale of MPL’s vet cancer applications following commercially valuable Phase 2 outcomes.
This article was developed in collaboration with PharmAust, 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.