Island Pharmaceuticals Ltd (ASX:ILA) has opened a fully underwritten, non-renounceable, pro-rata offer for eligible shareholders to raise $1.95 million before costs.
The offer allows eligible shareholders to subscribe for two new shares for every five existing shares held, plus one option for every new share issued.
Each option holder will also be eligible for one additional option for each new option exercised within three months of the closing date of the offer.
Both directors of the company intend to take part, with funds going to analysis of data from ILA’s Phase 1 dose escalation study and preparation for a Phase 2 clinical trial for its lead asset, ISLA-101, which is being repurposed for Dengue Fever.
“Exciting and critical period”
“We are delighted with the support shown by existing and new sophisticated and professional investors to this offer and are very pleased to extend the offer on the same terms to all eligible shareholders,” Island Pharmaceuticals CEO and managing director Dr David Foster said.
“Funds raised will be used to analyse the Phase 1 dose and prepare for the planned Phase 2 clinical trial (PEACH study).
“If the options issued under the offer are exercised funds will advance our Phase 2 efficacy study for ISLA-101 with respect to dengue fever, which will define an exciting and critical period for the company.”
The offer will open on March 5 and end on March 14, with shares to be issued by March 21, 2024.