OncoSil Medical (ASX: OSL) will raise $7.8 million via a placement that was heavily oversubscribed to sophisticated and institutional investors and a further $2.5 million from a share purchase plan.
The placement to professional investors will see 60,197,319 ordinary fully paid shares issued at a price of $0.13 per share.
While a Share Purchase Plan to eligible shareholders will issue of up to 19,230,769 ordinary shares, also at $0.13 cents per share.
The SPP will be capped to $2.5 million and will be scaled back according to a first come first served basis.
OncoSil shares were trading at $0.145 before the company went into a trading halt.
Funds raised will be used for the global Registration Study for its OncoSil™ localised radiation therapy for the treatment of pancreatic cancer.
OncoSil Medical CEO Dr. Neil Frazer said:
"We are delighted with the strong level of support for the Placement, which is a validation of the Company's development plans for OncoSil™ and its potential to provide a commercially viable treatment option for pancreatic cancer.
We look forward to providing updates on the progress of OncoSil™'s development in due course."
Background
The company is developing OncoSil™ as a localised, implantable nuclear medicine device for the treatment of pancreatic cancer. It emits radiation directly into the pancreatic tumour and the pain conducting nerves surrounding it.
There are already highly successful, commercially available, local radiation products for treatment of liver cancer and prostate cancer.
Radiation therapy, such as that provided by OncoSil™, has been proven over many years to kill tumour cells. OncoSil™ delivers radiation therapy locally for up to three months (P32 half-life of 14.3 days). There may also be potential use for OncoSil™ in other cancer indications.
Board changes
Non-executive director David McAuliffe and joint company secretary Robert Hodby will step down from their roles with the company effective from today.
McAuliffe and Hodby both played significant roles in the acquisition of the business of Enigma Therapeutics (whose lead product was OncoSil™) and the transition in the Company's change in focus to OncoSil™ as its new lead product candidate.
Analysis
Since the new management team took the reins in June, it has been up and up for OncoSil as the market valuation of the company has soared to over $35 million, providng a windfall for shareholders. With the placement known to be extremely heavily oversubscribed, the SPP will likely have to scale back shareholders. New funding to be used to attain global Registration Study for its OncoSil™ will ring in further value uplift.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.