Prana Biotechnology (ASX:PBT) has successfully concluded a capital raising for A$7 million via placement of 35.9 million fully paid ordinary shares at a price of $0.195 per share.
The funding also includes a A$2 million component to be raised through an underwritten share purchase plan.
Prana aims to raise a maximum of $4 million via the SPP, which is being offered at the placement price to shareholders, with the first $2 million underwritten by JM Financial Group.
The record date for the SPP is 26 March, with the offer closing on 26 April and allotment and issue of SPP shares slated for 3 May.
The capital raising boosts its balance sheet with Prana already holding $8.8 million in cash and cash equivalents at the end of December 2012.
The capital is being raised by Prana to accelerate the regulatory pathway of its key clinical asset PBT2, now in two concurrent Phase II clinical trials in Huntington Disease and Alzheimer’s Disease.
Recruitment was completed for both clinical trials on time and within budget. Results are expected to be reported in October 2013 for Huntington’s Disease and first quarter of 2014 for Alzheimer’s Disease.
The funding would pave the way for commercialisation of PBT2 a year sooner than would be possible otherwise.
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