MELBOURNE, Australia, July 21, 2014 /PRNewswire/ -- Australian drug delivery company, Phosphagenics Limited (ASX: POH; OTCQX: PPGNY), today announced that it has raised A$12.2 million of its A$16.3 million capital raising program. The Company is looking to raise an additional A$3 million from a share purchase plan (SPP) to be offered to existing shareholders.
Phosphagenics completed the institutional placement for 153,000,000 shares at 8 cents per share on July 11, 2014. Total gross proceeds from this placement to institutions and accredited investors were approximately A$12.2 million. A placement of a further 51,000,000 shares at the same price will be subject to shareholders' approval at a General Meeting to be held on or around August 25, 2014.
Phosphagenics will also seek to raise a further A$3 million through an SPP to existing shareholders at 8 cents per share. The record date for participating in the SPP offer is July 10, 2014. The SPP documentation was sent to shareholders on July 17, 2014.
Investor Relations Manager
MZ North America
Phosphagenics Limited is a drug delivery company that is commercialising various products within the pharmaceutical, cosmetics and animal health sectors, using its proprietary drug delivery system called TPM® (Targeted Penetration Matrix). TPM® is a patient friendly and cost effective system, based on Vitamin E, that enhances the topical or transdermal delivery of active molecules. The lead products advancing through clinical trials are oxymorphone and oxycodone patches for the relief of chronic pain.
Phosphagenics' shares are listed on the Australian Securities Exchange (POH) and its ADR -- Level 1 program in the US is with The Bank of New York Mellon (PPGNY).
Inherent Risks of Investment in Biotechnology Companies
There are a number of inherent risks associated with the development of pharmaceutical products to a marketable stage. The lengthy clinical trial process is designed to assess the safety and efficacy of a drug prior to commercialisation and a significant proportion of drugs fail one or both of these criteria. Other risks include uncertainty of patent protection and proprietary rights, whether patent applications and issued patents will offer adequate protection to enable product development, the obtaining of necessary drug regulatory authority approvals and difficulties caused by the rapid advancements in technology.
Certain statements in this announcement may contain forward-looking statements regarding Company business and the therapeutic and commercial potential of its technologies and products in development. Any statement describing Company goals, expectations, intentions or beliefs is a forward-looking statement and should be considered an at-risk statement. Such statements are subject to certain risks and uncertainties, particularly those risks or uncertainties inherent in the process of developing technology and in the process of discovering, developing and commercialising drugs that can be proven to be safe and effective for use as human therapeutics, and in the endeavour of building a business around such products and services.
SOURCE Phosphagenics Limited