SUDA Pharmaceuticals Ltd (ASX:SUD) (FRA:E4N) has allotted and issued 142,254,397 new shares and 47,418,378 attaching listed options (SUDOE) after completing the non-renounceable pro-rata entitlement offer announced on July 3, 2020, raising $3.56 million
The company closed the offer heavily oversubscribed with applications for entitlements and additional top-up shares received from shareholders totalling $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.
Shares are up more than 11% to 4.8 cents.
Last month the company received Therapeutics Goods Administration (TGA) approval for registration of its lead product ZolpiMist™ for the treatment of short-term insomnia in adults.
TGA approval enables ZolpiMistTM to be sold in Australia, enables a more competitive supply price and supports corresponding submissions in additional territories.
The approval had been received towards the end of the capital raise, however, SUDA had received strong support from current shareholders and Baker Young’s clients prior to the announcement.
Due to the overwhelming demand, the company has proposed to place a further 21,338,159 fully paid ordinary shares at 2.5 cents per share to raise an additional $533,453 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.
In accordance with their terms, the exercise price of the company’s Listed Options (SUDOD) expiring June 30, 2021, is reduced to 37 cents.
Funds raised from the placement will be used to supplement working capital.