Melbourne, Australia; 17 November, 2010: Patrys Limited (ASX: PAB; Company), a biotechnology company focused on the development of revolutionary new treatments for cancer, is pleased to announce a successful capital raising of approximately $3.2 million, which was conducted via a private placement.
The capital raised, when coupled with existing financial resources, is sufficient to:
- Support an expanded PAT-SM6 human clinical trial;
- Further prepare PAT-SC1 and PAT-LM1 for clinical trial(s) and/or partnering;
- Support the CSL collaboration;
- Continue business development and licensing activities; and
- Expand the pipeline through internal R&D and potential acquisitions of clinical programs.
The financing was led by Wilson HTM and Lodge Partners and supported by institutions and high net worth individuals. Both new and existing shareholders participated in the financing.
Dan Devine, Patrys CEO said: “Our team set a prudent funding target to further support the clinical development of PAT-SM6 and to support other key activities, and we are pleased with the positive response we received from institutional and sophisticated investors, both from Australia and Europe."
The placement involves a first close of approximately $2.9 million with the issue of 28,940,000 million ordinary shares at $0.10 per share. The balance of the funding is subject to shareholder approval at an extraordinary general meeting (EGM) to be convened on or about 22 December 2010, in order to comply with ASX Listing Rule 7.1. Subject to shareholder approval the second funding close will involve the issue of a further approximately 3,600,000 ordinary shares at $0.10 per share.
In order to allow all existing shareholders to participate in the capital raising, at the same price as the placement, the Company will launch a share purchase plan (SPP). Participation in the SPP is open to Eligible Shareholders (defined below). Funds raised from the SPP will be used to extend and support clinical programs, pipeline expansion and other key company activities.
Under the SPP, Eligible Shareholders will be able to purchase up to $15,000 worth of new fully paid ordinary shares in the Company. This offer is irrespective of the number of shares an Eligible Shareholder currently holds. The Company will be issuing the shares under ASIC Regulatory Guide 125 and relying on Class Order 09/425 for relief from issuing a disclosure document.
The issue price for shares offered under the SPP will be $0.10 per share, which represents a 22% discount to the volume weighted average market price of the Company’s shares for the 30 trading days immediately preceding the announcement of the offer on 17 November 2010.
The SPP will provide the opportunity for Eligible Shareholders to participate in the financing without incurring brokerage or transaction costs.
Eligible Shareholders are those shareholders whose registered addresses are within Australia or New Zealand as at 7.00 p.m. (AEST) on 16 November 2010 (Record Date). Shareholders with a registered address outside Australia or New Zealand at the Record Date (Excluded Shareholders) will not be eligible to participate in the SPP.
A Notice of Meeting for the EGM will be mailed to all shareholders on or about 22 November 2010. A written offer document for the SPP will be mailed to all Eligible Shareholders together with a personalised Entitlement and Acceptance Form, on or about 22 November 2010.
For further information, please contact:
Patrys Limited: Patrys Media:
Daniel Devine Kyahn Williamson
Chief Executive Officer Buchan Consulting
P: +61 3 9670 3273 P: +61 3 9866 4722
About Patrys Limited:
Based in Melbourne, Australia, Patrys (ASX: PAB) is focused on the development of natural human antibodies as therapies for cancer and other major diseases. Patrys has a deep pipeline of anti-cancer natural human antibodies that enable both internal development and partnering opportunities. More information can be found at www.patrys.com.
Patrys commenced a clinical trial evaluating PAT-SM6 as a treatment for melanoma in August 2010. The first cohort of three patients was dosed in October/November 2010 and the Company has recently announced that no safety issues have arisen with any of the patients treated. The natural human antibody PAT-SM6 has been shown to have potent anti-cancer properties in a large number of laboratory and animal studies. PAT-SM6 binds to a form of glucose-regulated protein 78 (GRP78), which is expressed on the surface of cancer cells but not detected on the surface of healthy cells. Once bound, the PAT-SM6/GRP78 complex is then internalised into malignant/cancer cells inducing apoptosis and cell death. Extensive third party literature has correlated GRP78 expression with an adverse prognosis in melanoma, breast, lung, gastric, liver and prostate cancer, and drug resistance in breast cancer. Given GRP78's reported roles with respect to several cancers, a molecule such as PAT-SM6 presents a promising anti-cancer treatment to the extent it interferes with the function of GRP78 in cancer. Patrys has filed patent applications to cover the PAT-SM6 antibody molecule, disease target, and the mechanism of action.
PAT-SC1 is a natural human antibody that acts by binding to a special form of a protein, called CD55 that appears on the surface of gastric cancer cells but not on the surface of healthy cells, thereby permitting PAT-SC1 to kill the cancer cells while sparing the healthy cells. PAT-SC1 was evaluated in an investigator led human clinical trial, under which treated patients were dosed with PAT-SC1 48 hours prior to a surgical procedure that involved the removal of the primary tumour (surgical removal of the tumour is currently the standard treatment). Thirty-five PAT-SC1 treated gastric cancer patients showed a statistically significant increased survival benefit compared to a historic control group of 53 patients that received the same surgical treatment but who did not receive PAT-SC1. Additional published data shows that PAT-SC1 at this dose level was very safe and well tolerated by patients receiving the treatment. The referenced clinical results were compiled by an independent research firm.
PAT-LM1 is a natural human antibody that has been shown to have potent anti-cancer properties in a large number of laboratory and animal studies. This lead product binds to a proprietary disease target that is expressed on the surface of cancer cells called NONO, or nmt55. With over 200 individual patient tumours screened, covering several different cancers, PAT-LM1 binds to nearly 98% of those tumours regardless of cancer type, age, gender or disease stage. PAT-LM1 does not bind to healthy tissues or cells, giving it a very safe profile. PAT-LM1 completed preclinical toxicology studies in 2009 and was shown to be safe.
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