Botanix Pharmaceuticals (ASX:BOT) has received commitments to raise $7.4 million via an oversubscribed placement to institutional and sophisticated investors at $0.055 per share.
The funds raised will be used to accelerate the clinical development of synthetic cannabidiol products and pursue commercialisation of the Permetrex delivery technology.
Last week, Botanix received approval in Australia to conduct the first clinical study of synthetic cannabidiol for acne using the company’s BTX 1503 product.
The approval was granted by the Human Research Ethics Committee (HREC) of the Queensland Institute for Medical Research.
Importantly, the study will be the first to be conducted anywhere in the world using synthetic cannabidiol for the treatment of a skin disease, with oversight from a regulator.
In conjunction with the trial of BTX 1503 which is commencing in the coming weeks, Botanix expects to fast-track the development of BTX 1204, which is a topical treatment for atopic dermatitis.
The development work already underway for BTX 1503 can be utilised to support the advancement of BTX 1204 into clinical trials, which is likely to save considerable time and cost for Botanix.
Post capital raising, the company will be well funded for the development phase with circa $9.0 million cash.
Furthermore, Botanix intends to progress multiple opportunities to generate near term revenues to further enhance the company’s funding position.
Botanix’s share price has increased 48% since the start of 2017, last trading at $0.065.