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Peplin secures approximately US$24m in additional financing
18 / 08 / 2008
Peplin, Inc. (ASX:PLI) today announced the successful arrangement of a private placement of common stock and warrants to raise approximately US$24.0 million (Placement). The financing will primarily fund Phase III of clinical development of PEP005 (ingenol mebutate) for actinic (solar) keratosis (AK).
As of 30 June 2008, assuming the completion of the Placement and the recently announced acquisition of Neosil (each of which remains subject to shareholder approval), Peplin's pro-forma cash position would be US$56.0 million. The Company expects this cash balance will be sufficient to fund phase III testing of Peplin's lead product, PEP005 (ingenol mebutate) for AK on both the head and on the body.
The Placement consists of 4.0 million shares of unregistered common stock, equivalent to 80 million CHESS Depositary Interests (CDIs), and warrants to purchase up to approximately 1.3 million shares of common stock.
The securities were sold as a unit (Unit), with each Unit consisting of three shares of common stock and a free four year warrant to purchase one share of common stock. Each Unit was sold for US$18.14, equivalent to A$0.35 per CDI which represents less than a two percent discount to the five day volume weighted price of Peplin CDIs trading on ASX to 15 August 2008 (A$0.356). The warrants will be exercisable into one share of common stock upon the payment of US$7.86, a 30% premium to the purchase price of the common stock. The Placement is subject to the approval of Peplin's shareholders at a meeting expected to be held in October.
The Placement was led by GBS Venture Partners (GBS), an Australian-based, venture capital group focused on life science opportunities. Dr Joshua Funder, a representative of GBS will join Peplin's Board of Directors following the closing.
The additional investors under the Placement comprise certain of the Company's existing shareholders, including MPM Capital, through its Bio Ventures IV fund, and New Enterprise Associates, Inc. (NEA), a global venture capital firm with approximately US$8.5b in committed capital. Existing investors Asia Union Investments and Orbis Funds Management also participated.
CEO Tom Wiggans described the capital raising as a significant fundraising event and said: "Peplin is pleased to have secured development capital to progress its lead program. We are now in a position to continue to progress Phase III trials of our lead product, PEP005 (ingenol mebutate) for AK, as a new and attractive treatment for actinic (solar) keratosis, a common pre-cancerous skin lesion."
"We are very pleased with the recent progress in PEP005's development. The program has achieved important milestones and we are excited to continue this momentum as we enter Phase III trails."
The shares of unregistered common stock are restricted and are not generally transferable until such time as Peplin has filed and the Securities and Exchange Commission has declared effective a resale prospectus relating to the shares of common stock. The new shares of common stock to be issued under the Placement will carry the same rights as the shares currently on issue.
Upon shareholder approval and following the closing of the Placement and previously announced acquisition of Neosil, Peplin would have approximately 15.2 million shares of common stock outstanding, equivalent to 303.6 million CDIs.
Further information:
Tom Wiggans
Chief Executive Officer
Tel: +1-510-653 9700
tom.wiggans@peplin.com
acollett@hillandknowlton.com.au
Media:
Sue Cook or Andrew Collett
Hill & Knowlton
Tel: 02-9286 1223, 02-9286 1224
scook@hillandknowlton.com.au
As of 30 June 2008, assuming the completion of the Placement and the recently announced acquisition of Neosil (each of which remains subject to shareholder approval), Peplin's pro-forma cash position would be US$56.0 million. The Company expects this cash balance will be sufficient to fund phase III testing of Peplin's lead product, PEP005 (ingenol mebutate) for AK on both the head and on the body.
The Placement consists of 4.0 million shares of unregistered common stock, equivalent to 80 million CHESS Depositary Interests (CDIs), and warrants to purchase up to approximately 1.3 million shares of common stock.
The securities were sold as a unit (Unit), with each Unit consisting of three shares of common stock and a free four year warrant to purchase one share of common stock. Each Unit was sold for US$18.14, equivalent to A$0.35 per CDI which represents less than a two percent discount to the five day volume weighted price of Peplin CDIs trading on ASX to 15 August 2008 (A$0.356). The warrants will be exercisable into one share of common stock upon the payment of US$7.86, a 30% premium to the purchase price of the common stock. The Placement is subject to the approval of Peplin's shareholders at a meeting expected to be held in October.
The Placement was led by GBS Venture Partners (GBS), an Australian-based, venture capital group focused on life science opportunities. Dr Joshua Funder, a representative of GBS will join Peplin's Board of Directors following the closing.
The additional investors under the Placement comprise certain of the Company's existing shareholders, including MPM Capital, through its Bio Ventures IV fund, and New Enterprise Associates, Inc. (NEA), a global venture capital firm with approximately US$8.5b in committed capital. Existing investors Asia Union Investments and Orbis Funds Management also participated.
CEO Tom Wiggans described the capital raising as a significant fundraising event and said: "Peplin is pleased to have secured development capital to progress its lead program. We are now in a position to continue to progress Phase III trials of our lead product, PEP005 (ingenol mebutate) for AK, as a new and attractive treatment for actinic (solar) keratosis, a common pre-cancerous skin lesion."
"We are very pleased with the recent progress in PEP005's development. The program has achieved important milestones and we are excited to continue this momentum as we enter Phase III trails."
The shares of unregistered common stock are restricted and are not generally transferable until such time as Peplin has filed and the Securities and Exchange Commission has declared effective a resale prospectus relating to the shares of common stock. The new shares of common stock to be issued under the Placement will carry the same rights as the shares currently on issue.
Upon shareholder approval and following the closing of the Placement and previously announced acquisition of Neosil, Peplin would have approximately 15.2 million shares of common stock outstanding, equivalent to 303.6 million CDIs.
Further information:
Tom Wiggans
Chief Executive Officer
Tel: +1-510-653 9700
tom.wiggans@peplin.com
acollett@hillandknowlton.com.au
Media:
Sue Cook or Andrew Collett
Hill & Knowlton
Tel: 02-9286 1223, 02-9286 1224
scook@hillandknowlton.com.au