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SUDA Pharmaceuticals raising $3.56 million to further develop oro-mucosal drug delivery assets

Funds from the 1 for 1 non-renounceable entitlement offer will be used for the development of the company’s anagrelide and the remaining OroMist assets.

SUDA Pharmaceuticals Ltd - SUDA Pharmaceuticals raising $3.56 million to further develop oro-mucosal drug delivery assets
The offer price represents a 37.5% discount to the last traded price

SUDA Pharmaceuticals Ltd (ASX:SUD) has launched an entitlement offer to raise approximately $3.56 million with funds intended for development of the company’s anagrelide and the remaining OroMist assets.

The 1 for 1 non-renounceable entitlement offer is for fully paid ordinary shares at 2.5 cents per share, which represents a 37.5% discount to the last traded price and a discount of 34.3% to the 15 trading day VWAP.

It also includes one option for every three new shares issued with an exercise price of 5 cents and an expiry date of July 31, 2022.

“Exciting time for company”

SUDA’s CEO Dr Michael Baker said: “This is an exciting time for the company as we look to secure TGA approval for ZolpiMist in Q4 2020 and we continue to develop anagrelide into a pharmaceutical-grade oral spray formulation for the treatment of solid tumours.

“With a board and senior management group that is well versed in sourcing and evaluating new technologies, we look forward to adding additional products to the SUDA portfolio.”

Under the entitlement offer, eligible shareholders will be able to subscribe for one new ordinary share in SUDA for every one existing share held at 7.00pm (AEST) on Wednesday, July 8, 2020.

Use of proceeds

Proceeds will be used for:

  1. The development of the company’s anagrelide and the remaining OroMist assets;
  2. The potential acquisition and development of new assets; and
  3. General working capital.

Approximately 142,254,397 new ordinary shares will be issued as part of the entitlement offer with shares issued under the offer to rank equally with existing shares.

Top-up facility

The entitlement offer will include a top-up facility under which eligible shareholders who take up their full entitlement will be invited to apply for additional shares in the offer from a pool of those not taken up by other eligible shareholders.

There is no guarantee that applicants under this top-up facility will receive all or any of the shares they apply for under the facility.

The Entitlements are non-renounceable and will not be tradeable on ASX or otherwise transferable.

Shareholders who do not take up their entitlements will not receive any value for those entitlements that they do not take up.

Those shareholders who are not eligible to receive entitlements will not receive any value for the entitlements they would have received had they been eligible.

Developing low-risk oral sprays

SUDA is developing low-risk oral sprays using its OroMist® technology to reformulate existing pharmaceuticals.

The many potential benefits of administering drugs through the oral mucosa (ie cheeks, tongue, gums and palate) include ease of use, lower dosage, reduced side effects and faster response time.

SUDA’s product pipeline includes ZolpiMist™, a first-in-class oral spray of zolpidem for insomnia.

Other products in development include oral sprays for the treatment of migraine headache; chemotherapy-induced nausea and vomiting; erectile dysfunction; pulmonary hypertension; epileptic seizures and pre-procedural anxiety and cancer.

Quick facts: SUDA Pharmaceuticals Ltd

Price: 0.044 AUD

ASX:SUD
Market: ASX
Market Cap: $13.46 m
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