Patrys announces capital raising of $3.2 million and share purchase plan

Patrys Limited (ASX: PAB; Company), a biotechnology company focused on the development of revolutionary new treatments for cancer, is pleased to announce a successful capital raising of approximately $3.2 million, which was conducted via a private placement. 

The capital raised, when coupled with existing financial resources, is sufficient to:

• Support an expanded PAT-SM6 human clinical trial;
• Further prepare PAT-SC1 and PAT-LM1 for clinical trial(s) and/or partnering;
• Support the CSL collaboration;
• Continue business development and licensing activities; and
• Expand the pipeline through internal R&D and potential acquisitions of clinical programs.

The financing was led by Wilson HTM and Lodge Partners and supported by institutions and high net worth individuals.  Both new and existing shareholders participated in the financing.

Dan Devine, Patrys CEO said: “Our team set a prudent funding target to further support the clinical development of PAT-SM6 and to support other key activities, and we are pleased with the positive response we received from institutional and sophisticated investors, both from Australia and Europe." 

The placement involves a first close of approximately $2.9 million with the issue of 28,940,000 million ordinary shares at $0.10 per share.  The balance of the funding is subject to shareholder approval at an extraordinary general meeting (EGM) to be convened on or about 22 December 2010, in order to comply with ASX Listing Rule 7.1.  Subject to shareholder approval the second funding close will involve the issue of a further approximately 3,600,000 ordinary shares at $0.10 per share.

In order to allow all existing shareholders to participate in the capital raising, at the same price as the placement, the Company will launch a share purchase plan (SPP).  Participation in the SPP is open to Eligible Shareholders (defined below).  Funds raised from the SPP will be used to extend and support clinical programs, pipeline expansion and other key company activities.

Under the SPP, Eligible Shareholders will be able to purchase up to $15,000 worth of new fully paid ordinary shares in the Company.  This offer is irrespective of the number of shares an Eligible Shareholder currently holds.  The Company will be issuing the shares under ASIC Regulatory Guide 125 and relying on Class Order 09/425 for relief from issuing a disclosure document.

The issue price for shares offered under the SPP will be $0.10 per share, which represents a 22% discount to the volume weighted average market price of the Company’s shares for the 30 trading days immediately preceding the announcement of the offer on 17 November 2010.

The SPP will provide the opportunity for Eligible Shareholders to participate in the financing without incurring brokerage or transaction costs. 

Eligible Shareholders are those shareholders whose registered addresses are within Australia or New Zealand as at 7.00 p.m. (AEST) on 16 November 2010 (Record Date).  Shareholders with a registered address outside Australia or New Zealand at the Record Date (Excluded Shareholders) will not be eligible to participate in the SPP. 

A Notice of Meeting for the EGM will be mailed to all shareholders on or about 22 November 2010.  A written offer document for the SPP will be mailed to all Eligible Shareholders together with a personalised Entitlement and Acceptance Form, on or about 22 November 2010.