Actinogan Medical Ltd (ASX:ACW) will open a share purchase plan (SPP) to its shareholders at the same price as its recently completed $15 million share placement.
The recent placement included a $10.5 million cornerstone investment from leading US biotech investors Biotechnology Value Fund, L.P.
The SPP will be priced at 5 cents and be on a first-come, first-served basis capped at $2.0 million.
The offer opens today and will close 11 July 2018.
Advancing Alzheimer’s disease drug
Actinogen’s lead drug candidate Xanamem™ represents a novel approach to treating Alzheimer’s disease – a condition with a significant unmet medical need.
It blocks the production of stress hormone cortisol, which appears to contribute to cognitive impairment, amyloid plaques and neural death - hallmarks of Alzheimer’s disease.
Alzheimer’s growing rapidly
Alzheimer’s disease is the most common form of dementia and has a debilitating effect on patients and their loved ones.
Alzheimer’s is also growing rapidly and is now the second leading cause of death in Australia behind ischaemic heart disease.
The American Alzheimer’s Association estimates that the direct healthcare cost of the disease was $US250 billion in 2013, and by 2050, the cost of care for people with the disease is expected to be over $US1 trillion, outstripping the cost of treating all other diseases.
Proceeds to fund ongoing drug development
The proceeds from this SPP will support the ongoing development of Xanamem through the company’s development plan.
This plan includes, among others, a study exploring a higher dose of Xanamem in Alzheimer’s disease and studies conducted in alternative clinical indications.
Expansion of the development plan for Xanamem into these new indications will enhance the value of the company’s data set.