Biotron announces fully-underwritten Rights Issue

THE ROADHOUSE PHARMACY: Australian drug development company Biotron Limited (ASX: BIT) has announced a fully underwritten renounceable rights issue to raise $4.1 million.

Net proceeds, in conjunction with existing cash reserves, will be used:

To complete the current Phase 2 trial that is in progress (BIT225-008 – HCV genotypes 1 and 3 trial for 3 months dosing with BIT225 in combination with IFN/RBV);

For studies to complete IND filings with the USA FDA: drug-drug interaction studies with new DAAs to be used with BIT225 in the IND trial; modelling pharmacokinetic data from previous trials to determine optimal BIT225 dose and frequency in the IND trial; and additional in vitro laboratory studies of BIT225’s antiviral activity, including studies with other DAA drugs;

For commercialisation negotiation legal fees, travel and personnel costs; and

For general working capital.

The offer will be made to shareholders on a two for nine basis at the issue price of 8 cents.

“The Directors are pleased with the strong demand received from the institutional and sophisticated investors,” Biotron said in its ASX announcement.

“The bookbuild closed significantly oversubscribed, indicating a level of demand in support of the potential of the company’s drug development program, positive clinical trial results to date and commercialisation potential.

Website: www.biotron.com.au