Agenix aims to raise $9.85m
Monday, 19 September, 2005
Brisbane-based Agenix (ASX:AGX, NASDAQ:OTC:AGXLY) has lodged a prospectus for an underwritten non-renounceable rights issue to raise $9.85 million before costs.
Agenix's rights issue will offer existing shareholders one new share for every four shares held on September 27 at an issue price of $0.25. At the time of writing, Agenix shares were trading at $0.28, down $0.02 from this morning's opening price.
Agenix is also inviting applications for additional shares up to a maximum aggregate of $500,000.
"The funds will be applied to manufacturing, scale-up and supply of ThromboView materials for phase III clinical trials," said Agenix finance director Neil Leggett.
Agenix recently signed a multi-million dollar contract with US company Diosynth Biotechnology to begin the process of manufacturing its ThromboView blood clot imaging product.
Leggett said $5.7 million of the funds raised will be used for manufacturing of ThromboView and $4.1 million would be used for other ThromboView clinical trial and project costs.
Agenix is currently completing phase II trials, with 46 out of a total of 150 patients in its deep vein thrombosis phase II trial in the US enrolled so far. Phase III trials are expected to begin towards the second half of 2006, said Leggett.
With $9.5 million in undrawn bank facility, Leggett said that the capital raising is designed to give Agenix an enhanced net asset and cash position. The company is currently in discussions with global organisations with the aim of completing a sales, marketing and distribution agreement for ThromboView by the end of December.
"Whilst we're continuing to spend large amounts of money on ThromboView, because it is successful and is moving forward, the capital raising is also to give these potential partners confidence that they're going to be dealing with a partner with some substance," said Leggett.
Even if a sales, marketing and distribution deal was not struck, Leggett said that Agenix would still have sufficient funds from the raising to take the company beyond June 2006.
The rights issue is underwritten by Intersuisse.
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