BRISBANE, Australia--(BUSINESS WIRE)--Australian biotechnology company Alchemia (ASX:ACL - News) announced today a $15.2 million placement comprised of US and Australian institutional investors. The Company issued 12.5 million shares to top tier US institutions and 6.5 million shares to several existing Australian institutional shareholders at $.80 per share. ABN AMRO Morgans and Blueprint Life Science Group, LLC served as corporate advisors for the transaction.
Proceeds will principally be used to maintain pace with HyCAMP’s clinical development for colorectal cancer and accelerate the commercial development of the HyACT cancer drug delivery platform.
“We are delighted to welcome new strategic investors into the Company. With fondaparinux (synthetic heparin) on track to generate near-term revenue, this financing enables accelerated clinical and commercial development for the balance of Alchemia’s programs,” said Dr Peter Smith, Chief Executive Officer. “We have a number of opportunities to drive significant increases in shareholder value and these additional resources will greatly facilitate that process.”
“We are delighted that we received very strong support for this placement from top-tier investors. Over 70% of our shares are now owned by Australian and US institutional investors.”
The placement was oversubscribed. The strong demand enabled the additional separate placement of 1.6 million shares of an existing substantial shareholder who, as a result, has successfully re-weighted their portfolio interest in Alchemia shares.
About Alchemia
Alchemia is a drug discovery and development Company founded on its chemistry expertise. The Company’s lead program is fondaparinux (synthetic heparin, a generic version of GSK’s Arixtra) which will generate near-term revenues and was recently partnered with Dr. Reddy’s Inc for the US market. Alchemia’s pipeline of assets are built on two platform technologies; HyACT (targeted cancer drug delivery) & VAST (drug discovery). HyCAMP, for the treatment of colorectal cancer, recently achieved positive Phase II clinical trial results.
Contact: Alchemia Limited Dr. Pete Smith, 61-7-3340-0200 Chief Executive Officer
Source: Alchemia
