Updated on 3 October 2012
Singapore: Prana Biotechnology has raised $6 million (A$6 million) approximately through a placement of 32,500,000 ordinary fully paid shares (equivalent to 3.25 million Nasdaq-listed ADRs) at a price of A$0.185 per share. The placement attracted strong demand even though the amount raised was restricted by the number of shares which could be issued by the company under ASX listing rule 7.1.
The placement was subscribed by a range of leading Australian institutional investors within the healthcare sector in Australia, as well as several high net worth Investors. The placement was managed by JM Financial Group based in Melbourne. The capital was raised in order to support Prana's two ongoing phase II clinical trials, the IMAGINE trial and Reach2HD trial, testing the effects of its lead drug candidate, PBT2, in Alzheimer's and Huntington disease patients, respectively. Results are anticipated to be reported in 2H13.
"The funds raised by Prana via this placement, reflect strong commitment to Prana's clinical development programs and the commercial opportunity this provides. The endorsement of and participation by some of Australia's leading healthcare investors is very welcome," said Mr Geoffrey Kempler, executive chairman, Prana.