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ChemGenex Completes $A12.9 Million Capital Raising Announces Share Purchase Plan for existing Australian resident shareholders
17 / 09 / 2008
ChemGenex Pharmaceuticals Limited (ASX:CXS and NASDAQ:CXSP) announced today the successful completion of a $A12.9 million capital raising through a share placement to institutional and sophisticated investors (15,216,153 shares at $0.85 per share). In addition to the placement, ChemGenex is offering eligible shareholders the ability to purchase shares in ChemGenex under a Share Purchase Plan (SPP) (detailed below).
The placement was anchored by a commitment of A$6.5 million by existing major shareholders Alta Partners, GBS Venture Partners and Merck Sant (a subsidiary of Merck KGaA). These three shareholders have increased or maintained their respective percentage holdings in ChemGenex. Other institutional investors with expertise in the biotechnology sector also made significant investments.
Funds raised will be applied to the continued clinical trial program for the Company's lead oncology drug candidate, omacetaxine.
"We are delighted to have successfully completed this placement given the current financial market conditions" said Greg Collier, Chief Executive Officer and Managing Director of ChemGenex. "The placement will secure the company's financial position as we progress to complete clinical trials and the rolling new drug application (NDA) submission of omacetaxine to the FDA. We are on course to complete enrollments for the clinical section of our regulatory filing by the end of 2008, to file the CMC section of our rolling NDA submission at the end of Q1, 2009, and to complete our rolling NDA submission in mid 2009.
These are all critical milestones in the development and commercialisation strategy for omacetaxine."
"We are very pleased with the positive data from both of our phase 2/3 clinical trials of omacetaxine in drugresistant CML patients, and this funding will allow us to progress towards completion of the clinical trials and regulatory submissions." Dr Collier added.
Share Purchase Plan (SPP) Details
Under the SPP, ChemGenex will offer eligible shareholders the opportunity to participate on the same terms as the institutional investors by purchasing up to $5,000 of ChemGenex ordinary shares at $0.85 per share without incurring brokerage or transaction costs. Eligible shareholders are those shareholders with an Australian address registered as at 7pm on the record date of September 17, 2008.
Eligible Shareholders will be sent an Offer letter and Share Purchase Plan documents to enable them to further consider this offer.
Key dates for the SPP
Announcement Date September 17, 2008 (Wednesday) Share Purchase Plan is announced to the market
Record Date September 17, 2008 (Wednesday) Date for determining Eligible Shareholders
Opening Date September 22, 2008 (Monday) Share Purchase Plan opens
Closing Date October 3, 2008 (Friday) Share Purchase Plan closes at 4.00pm
Allotment Date October 10, 2008 (Friday) SPP Shares allotted
Despatch Date October 14, 2008 (Tuesday) Confirmation despatched to shareholders
Quotation Date October 15, 2008 (Wednesday) Shares are expected to be traded on ASX
ABN AMRO Morgans acted as Adviser and Lead Manager for the placement and will manage the SPP.
The shares have not been and will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
The placement was anchored by a commitment of A$6.5 million by existing major shareholders Alta Partners, GBS Venture Partners and Merck Sant (a subsidiary of Merck KGaA). These three shareholders have increased or maintained their respective percentage holdings in ChemGenex. Other institutional investors with expertise in the biotechnology sector also made significant investments.
Funds raised will be applied to the continued clinical trial program for the Company's lead oncology drug candidate, omacetaxine.
"We are delighted to have successfully completed this placement given the current financial market conditions" said Greg Collier, Chief Executive Officer and Managing Director of ChemGenex. "The placement will secure the company's financial position as we progress to complete clinical trials and the rolling new drug application (NDA) submission of omacetaxine to the FDA. We are on course to complete enrollments for the clinical section of our regulatory filing by the end of 2008, to file the CMC section of our rolling NDA submission at the end of Q1, 2009, and to complete our rolling NDA submission in mid 2009.
These are all critical milestones in the development and commercialisation strategy for omacetaxine."
"We are very pleased with the positive data from both of our phase 2/3 clinical trials of omacetaxine in drugresistant CML patients, and this funding will allow us to progress towards completion of the clinical trials and regulatory submissions." Dr Collier added.
Share Purchase Plan (SPP) Details
Under the SPP, ChemGenex will offer eligible shareholders the opportunity to participate on the same terms as the institutional investors by purchasing up to $5,000 of ChemGenex ordinary shares at $0.85 per share without incurring brokerage or transaction costs. Eligible shareholders are those shareholders with an Australian address registered as at 7pm on the record date of September 17, 2008.
Eligible Shareholders will be sent an Offer letter and Share Purchase Plan documents to enable them to further consider this offer.
Key dates for the SPP
Announcement Date September 17, 2008 (Wednesday) Share Purchase Plan is announced to the market
Record Date September 17, 2008 (Wednesday) Date for determining Eligible Shareholders
Opening Date September 22, 2008 (Monday) Share Purchase Plan opens
Closing Date October 3, 2008 (Friday) Share Purchase Plan closes at 4.00pm
Allotment Date October 10, 2008 (Friday) SPP Shares allotted
Despatch Date October 14, 2008 (Tuesday) Confirmation despatched to shareholders
Quotation Date October 15, 2008 (Wednesday) Shares are expected to be traded on ASX
ABN AMRO Morgans acted as Adviser and Lead Manager for the placement and will manage the SPP.
The shares have not been and will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.