Private placement to extend cash runway
Probiodrug AG (AS:PDB) has announced a capital raise of €13.5m from a private placement of 0.68m new shares; we estimate net proceeds of €12.9m. These funds should ensure Probiodrug can move swiftly ahead with future development plans for lead product PQ912 once data from the ongoing Phase IIa SAPHIR trial become available around mid-2016. Furthermore, the improved financial position should ensure Probiodrug can negotiate any deal terms, if a partner is sought, from a position of strength. Our rNPV is increased to €234m with inclusion of these new funds.
Capital raise completed
The private placement of 676,589 new shares at a price of €20/share (0% discount to the closing price on 5 November) raised gross proceeds of €13.5m. The company reports that there was strong demand from international institutional investors. The issued shares represent c 10% of the currently issued share capital.
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