Starpharma Holdings Limited (ASX:SPL)
Melbourne, April 7, 2009 AEST (ABN Newswire) - Starpharma Holdings Limited (ASX:SPL)(PINK:SPHRY) today announced a successful capital raising of at least A$4.3 million and up to A$4.6 million, through a private placement to existing and new institutional and sophisticated investors.
This placement will boost the company's cash reserves to over A$10 million. The additional funds raised will provide sufficient operating capital for development activities to commercialise the VivaGel(R) coated condom with Starpharma's partner SSL International Plc (LON:SSL), and to supplement grant funding to further advance the stand-alone VivaGel(R) development program. The funds will also support further partnering and commercialization of Starpharma's dendrimer applications, and strengthen the company's balance sheet by providing additional working capital.
The placement was led by Acorn Capital, one of Australia's few specialist funds to invest solely in Australian microcap and small cap stocks. In addition, one of Australia's largest and best known investment managers was among a number of other new institutions to participate in the placement.
Dr Jackie Fairley, CEO of Starpharma said: "We are delighted with the support of existing shareholders and new institutional shareholders in this placement. This reflects a growing confidence in the commercial prospects for the VivaGel(R) condom coating deal with SSL, the VivaGel(R) stand-alone product, and our broader product pipeline. We also appreciate the continued support of all shareholders, and will provide an opportunity for wider participation in the capital raising via a share purchase plan."
"Over the past twelve months Starpharma has worked hard to reduce its cash burn, and these initiatives, together with this new capital and our increasing commercial revenue streams, position Starpharma extremely well as we advance the VivaGel(R) coated condom and other products to market," Dr Fairley added.
The placement involves a first close of A$3.1 million with the immediate issue of approximately 11.8 million ordinary shares at A$0.26 per share. To enable a major institutional participant to take up its maximum allocation, a second tranche of shares will be issued in May raising a further A$1.2 to A$1.5 million. This second tranche of shares will be priced at the lesser of A$0.26 per share and the volume weighted average price per share over the five trading days immediately prior to the settlement of the second tranche. Given these two tranches of shares will be under 15% of issued capital, shareholder approval is not required.
The Company will also conduct a share purchase plan (SPP) priced at A$0.26. Participation in the SPP is open to eligible shareholders at 7.00pm (AEST) on Tuesday 7 April 2009 (the relevant record date). The SPP will provide the opportunity for eligible shareholders to participate in the financing, without incurring brokerage or transaction costs.
A written offer document for the SPP will be mailed to all eligible shareholders in due course.
Contact
Dr Jackie Fairley
Chief Executive Officer
TEL: +61-3-8532-2704
Ben Rogers
Company Secretary
TEL: +61-3-8532-2702
ben.rogers@starpharma.com
| ||
|
