Starpharma Holdings Limited
(ASX:SPL, OTCQX:SPHRY) today announced a successful capital raising of at
least A$4.3 million and up to A$4.6 million, through a private placement to
existing and new institutional and sophisticated investors.
Starpharma raises additional capital via institutional placement
Melbourne, Australia | Posted on April 6th, 2009
This placement will boost the company's cash reserves to over A$10 million.
The additional funds
raised will provide sufficient operating capital for development activities
to commercialise the VivaGel® coated condom with Starpharma's partner SSL
International Plc (LSE:SSL), and to supplement
grant funding to further advance the stand-alone VivaGel® development program.
The funds will
also support further partnering and commercialization of Starpharma's dendrimer
strengthen the company's balance sheet by providing additional working capital.
The placement was led by Acorn Capital, one of Australia's few specialist funds
to invest solely in
Australian microcap and small cap stocks. In addition, one of Australia's largest
and best known
investment managers was among a number of other new institutions to participate
Dr Jackie Fairley, CEO of Starpharma said: "We are delighted with the
support of existing
shareholders and new institutional shareholders in this placement. This reflects
confidence in the commercial prospects for the VivaGel® condom coating deal
with SSL, the
VivaGel® stand-alone product, and our broader product pipeline. We also
appreciate the continued
support of all shareholders, and will provide an opportunity for wider participation
in the capital
raising via a share purchase plan."
"Over the past twelve months Starpharma has worked hard to reduce its
cash burn, and these initiatives, together with this new capital and our increasing
commercial revenue streams, position Starpharma extremely well as we advance
the VivaGel® coated condom and other products to market," Dr Fairley
The placement involves a first close of A$3.1 million with the immediate issue
of approximately 11.8 million ordinary shares at A$0.26 per share. To enable
a major institutional participant to take up its maximum allocation, a second
tranche of shares will be issued in May raising a further A$1.2 to A$1.5 million.
This second tranche of shares will be priced at the lesser of A$0.26 per share
and the volume weighted average price per share over the five trading days immediately
prior to the settlement of the second tranche. Given these two tranches of shares
will be under 15% of issued capital, shareholder approval is not required.
The Company will also conduct a share purchase plan (SPP) priced at A$0.26.
Participation in the
SPP is open to eligible shareholders at 7.00pm (AEST) on Tuesday 7 April 2009
record date). The SPP will provide the opportunity for eligible shareholders
to participate in the
financing, without incurring brokerage or transaction costs.
A written offer document for the SPP will be mailed to all eligible shareholders
in due course.