Prana Announces A$6.0 Million Capital Raising
Melbourne – October 1, 2012 : Prana Biotechnology Limited (NASDAQ:PRAN; ASX:PBT) today announced that it has raised A$6.0 million (approx.) through a placement of 32,500,000 ordinary fully paid shares (equivalent to 3.25 million Nasdaq listed ADRs) at a price of A$0.185 per share. The placement attracted strong demand even though the amount raised was restricted by the number of shares which could be issued by the Company under ASX listing rule 7.1, thereby not requiring a separate meeting of shareholders.
The placement was subscribed by a range of leading Australian institutional investors within the healthcare sector in Australia, as well as several High Net Worth Investors. The placement was managed by JM Financial Group Limited, based in Melbourne.
The capital was raised in order to support Prana’s two ongoing Phase 2 clinical trials, the IMAGINE trial and Reach2HD trial, testing the effects of its lead drug candidate, PBT2, in Alzheimer’s and Huntington disease patients, respectively. Results are anticipated to be reported in 2H13.
“The funds raised by Prana via this placement, reflect strong commitment to Prana’s clinical development programmes and the commercial opportunity this provides. The endorsement of and participation by some of Australia’s leading healthcare investors is very welcome” said Geoffrey Kempler, Prana’s Executive Chairman.
Prana management and scientific advisors are on a roadshow this week in Melbourne New York, Boston and London, updating the investment community on Prana’s progress.