Pharmaxis Ltd (ASX:PXS, OTC:PMXSF) has launched its share purchase plan (SPP) to raise approximately A$2 million to fund clinical trials and for working capital.
The SPP gives eligible shareholders the opportunity to acquire up to A$30,000 of new fully paid ordinary shares in Pharmaxis at an issue price of A$0.105 per SPP share without incurring brokerage or transaction costs.
The capital raise is part of its move to bolster its balance sheet as it enters a transformational 12 months with clinical trials of its lead drug PXS-5505 in cancer.
A Phase 2a study in myelofibrosis is already recruiting and a Phase 1c/2a investigator-led study in liver cancer (Hepatocellular Carcinoma) is being conducted with the University of Rochester, expected to commence first half of 2022.
Earlier in November, the company launched a A$7.2 million placement, which received oversubscribed commitments from sophisticated and institutional investors.
Key features of SPP
The SPP is not underwritten and depending on the level of demand, Pharmaxis may decide to raise a higher amount or scale back applications under the SPP.
Key features:
➢ Price – The offer price of A$0.105 per SPP share, represents:
- A 12.4% discount to the volume-weighted average price (VWAP) of A$0.1198 on November 12, 2021; and
- A 12.0% discount to the VWAP of Pharmaxis shares traded on the ASX over the last five days on which sales in Pharmaxis shares were recorded before Wednesday, November 17, 2021 (the date the SPP was announced).
➢ Eligible shareholders – Participation in the SPP is optional and is open to eligible shareholders, including eligible shareholders who are custodians on behalf of eligible beneficiaries on the term and conditions set out in the offer booklet. The right to participate in the SPP is not transferable.
➢ Offer period – The SPP opens on November 25, 2021, and is expected to close at 5:00pm (Sydney, Australia time) on Wednesday, December 15, 2021.
➢ Ranking of SPP shares – All SPP shares issued will rank equally with existing Pharmaxis shares after commencement of trading.