SUDA Pharmaceuticals Ltd (ASX:SUD) (FRA:E4N) has closed its non-renounceable pro-rata entitlement offer heavily oversubscribed, with the $3.56 million raised demonstrating strong support from the company’s shareholders and endorsing the company's oro-mucosal drug delivery strategy.
The company will issue 142,254,397 shares and 47,418,132 listed options in accordance with the prospectus timetable to participants, including institutional shareholders.
SUDA chief executive officer Dr Michael Baker said: “The company was delighted to receive the TGA approval for our ZolpiMist product towards the end of the capital raise, however, we had received strong support from our current shareholders and Baker Young’s clients prior to that announcement.
“On behalf of the board, we would like to thank all shareholders who participated in the entitlement offer.”
The new options will be listed under ASX code SUDOE, with the new securities expected to be issued on Wednesday, August 5, 2020.
Applications for entitlements and additional top-up shares received from shareholders totalled $5.2 million, leading the company to scale back top-up applications in relation to the entitlement offer.
In preparation for any shortfall that may have arisen for the entitlement offer, the lead manager Baker Young, received bids in excess of $3.4 million.
Due to the overwhelming demand, the company proposes to place a further 21,338,159 fully paid ordinary shares at 2.5 cents per share to raise an additional $533,453 (placement) to sophisticated investors.
No attaching options will be issued as part of the placement and the securities will be issued without shareholder approval and using the company’s existing capacity under Listing Rule 7.1.
Funds raised from the placement will be used to supplement working capital.
In accordance with their terms, the exercise price of the company’s Listed Options (SUDOD) expiring June 30, 2021) is reduced to 37 cents.