BRISBANE, 11 June 2013: Australian drug development company Invion Limited (ASX: IVX) is pleased to announce that it has today completed a private placement to new and existing sophisticated and professional investors in Australia, the United States and Europe.
The Company will issue a total of 53,292,115 fully paid ordinary shares to raise approximately $2 million (before costs). The issue price per share is 3.8 cents, which was the closing share price on Wednesday 5 June 2013, being the last trading day prior to the commencement of the placement.
Funds raised from the placement will be applied to the development of Invion’s two drug assets INV102 (nadolol) and INV103 (ala-Cpn10) and general working capital. The Company is pleased that a number of directors have participated in the placement to support the ongoing FDA-regulated clinical programs.
Managing Director and Chief Executive Officer Dr Greg Collier said “The successful completion of this placement demonstrates strong interest from professional investors to see the advancement of Invion’s programs. Combined with the recently completed Share Purchase Plan, the Company has now raised in excess of $3.1 million.”
“This new injection of capital enables us to maintain momentum with our three phase II clinical trials targeting the major markets of asthma, chronic obstructive pulmonary disease, and lupus. We have a number of important milestones set down for the second half of 2013, and we look forward to delivering against those,” he said.
Details of the placement
Invion has agreed to place a total of 53,292,115 fully paid ordinary shares to sophisticated and professional investors including directors of the Company. As participation by directors and other related parties is subject to shareholder approval, the placement shares will be issued in two tranches.
- 50,278,783 shares at 3.8 cents to raise approximately $1.9 million will be issued on 18 June 2013 to sophisticated and professional investors under the company’s 15% capacity, pursuant to ASX Listing Rule 7.1;
- 3,013,332 shares at 3.8 cents to raise approximately $100,000 will be issued to participating directors and other related parties who have subscribed to the placement, subject to shareholder approval being received at an Extraordinary General Meeting which the company plans to hold in July 2013.
RBS Morgans Limited acted as Lead Manager to the placement.