Radiopharmaceutical company Cyclopharm (ASX: CYC) has received support from the investment community with CVC Managers Pty Limited fully underwriting a A$2.1 million pro-rata renounceable rights issue - which will comprise 52.6 million shares at A$0.04.
The offer included 1 share for every 3.2 shares held, with shareholders allowed to subscribe for additional shares under a shortfall facility.
The proceeds of the issue will go towards funding the operating costs of Cyclopet and to fund a Technegas clinical trial in the U.S.
Cyclopharm said that while the market for products manufactured by Cyclopet is growing, in the first year of operations the market has not reached initial expectations.
The lagging market combined with competition from government owned enterprises requires additional capital to support this new venture.