The funds were raised through a placement of 66,666,666 ordinary shares at $0.03 each to sophisticated and professional investors.
This represents a discount of 14.2% to the 10 day volume weighted average price immediately prior to the placement offer.
Cellmid is developing innovative therapies and diagnostic tests for inflammatory diseases and cancer, holding the largest portfolio of midkine-related intellectual property globally.
The company has completed several studies that demonstrate its lead anti-midkine (MK) antibodies efficacy in reducing cancer tumour growth and spread.
These highlighted that its MK antibody treatment slowed primary tumour growth, reduced cancer spread (metastasis) and slowed the formation of new blood vessels in different tumour types, which is a fundamental step in transition of tumors from a benign state to a malignant one.
Since its discovery, midkine's role in cancer has been validated extensively.
About 200 peer-reviewed publications have been released on the topic, including four within the last three months.
These studies, by multiple research groups around the world, show that MK is a key driver of tumorigenesis in at least 25 different types of cancers, including those of the breast, lung, colorectal, gastrointestinal, liver, pancreatic and brain.
Furthermore, these studies describe multiple mechanisms of action by which MK promotes cancer.
Notably, Cellmid's antibodies appear to block several of these mechanisms of action simultaneously.
Cellmid owns 78 patents in 20 families covering the use of midkine and anti-midkine agents -including antibodies - to prevent or treat inflammatory, autoimmune, ischemic and vascular diseases, to diagnose cancer and arthritis, and the production of MK protein and anti-MK antibodies.
It also has extensive proprietary knowledge and know-how pertaining to the production and manufacture of MK and anti-MK antibodies, MK structure, MK functional sites, epitopes of MK-specific antibodies, and MK knockout mice.
The company aims to start open label study in multiple solid tumours in the fourth quarter of 2014, with early efficacy information expected in the third quarter of 2015.
Anti-midkine antibodies have shown promise in cancer treatment, and Cellmid is also commercialising midkine as a biomarker for cancer diagnosis.
The funds raised are a show of confidence in Cellmid and will allow it to develop new drugs to add to its already respectable portfolio and to further develop its therapeutic antibody program.
There are milestones ahead in the company's cancer antibody program, which is continuing towards the clinic, targeting a pre-IND meeting in the third quarter of 2014.
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