Patrys Ltd (ASX:PAB) is raising $7.3 million through a mix of placement and rights issue to fund the accelerated development of its broader Deoxymab program through first-in-man studies.
The company has received firm commitments for a $2.5 million placement from institutional and sophisticated investors.
Along with the placement, Patrys has also launched a fully underwritten, non-renounceable, one for six rights issue to raise about $4.8 million.
The issue price for the placement and the rights issue is 2 cents per share.
Use of funds
Proceeds from the placement and the rights issue will significantly bolster Patrys’ financial position and provide funds for:
- The anticipated clinical trial of PAT-DX1 commencing in or before H1 2022;
- Expansion of the company’s business development activities;
- Acceleration of development of the broader deoxymab platform including the full IgG antibody PAT-DX3 and nanoparticle conjugation (PAT-DX1-NP);
- Initiation of an antibody drug conjugate (ADC) program; and
- Offer costs, working capital, and business development and corporate activities.
“Transformational capital raising”
Patrys chief executive officer and managing director James Campbell said: “This is a transformational capital raising for Patrys that positions the company to effectively leverage the wide range of therapeutic opportunities provided by its unique deoxymab platform.
“The funds are expected to allow the company to complete all the pre-clinical studies and manufacturing required to initiate the anticipated first-in-man studies of PAT-DX1.
“Patrys can now also focus on realising the breadth of the platform, by accelerating the development of the PAT-DX3 (full sized antibody) program, and advancing the PAT-DX1-NP program.
“Importantly, funds will also be applied to a new program on antibody drug conjugates (ADCs) based on deoxymab assets.
“Significant international interest”
Campbell added: “There is significant international interest in ADCs at present, and Patrys believes that the unique attributes of deoxymabs make them attractive to explore as potential new ADC therapeutics.
“Patrys also believes that a potential clinic-ready asset complemented by substantial pre-clinical data on platform applications will make a more compelling partnering opportunity.
“The company has a strong track record of attracting grant and non-dilutive funds to advance its programs and will pursue such avenues to support the activities described above.”