Circadian to raise $17.4 Million

THE ROADHOUSE PHARMACY: Circadian Technologies (ASX: CIR) announced a capital raising of $17.4 million by way of a placement of $14 million to institutional and sophisticated investors in the United States, Europe and Australia and a proposed $3.4 million fully underwritten non-renounceable rights issue to be offered to existing eligible shareholders.

For every two shares subscribed for under the Placement and Rights Issue, one free attaching option will be allocated, exercisable at 27 cents.

Bell Potter Securities acted as Lead Manager on the Placement and is the Underwriter to the proposed Rights Issue.

The new capital will be used to advance the company’s lead molecule, OPT-302, through to the end of Phase 1 and 2A clinical studies for the treatment of wet AMD.

Circadian explained wet AMD to be the leading cause of blindness in the Western world saying unmet medical need makes it a large market opportunity.

The funding will also strengthen Circadian’s balance sheet and advance the company’s business development activities to accelerate licensing opportunities for its Phase 2 ready oncology asset, VGX-100.

“This capital raising is an important milestone for Circadian,” Circadian Technologies chairman Dominique Fisher said in the company’s announcement to the Australian Securities Exchange.

“The valuation of comparable ophthalmology-focussed companies with early stage clinical programs gives us confidence that there is great potential for value-creation for existing Circadian shareholders and new investors as we advance the program through development.

“The strong support from specialist health care investors validates the commitment of Circadian’s shareholders to the company’s development program and positions the company to realise the value inherent in our intellectual property and portfolio of assets.”

At the completion of this $17.4m capital raising, Circadian is expected to be financially positioned through its cash balance and approximately $2 million of listed assets to fund OPT-302 Phase 1 and 2A clinical studies and realise value from its Phase 2 ready VGX-100 program for oncology.

Email: info@circadian.com.au

Website: www.circadian.com.au