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- Exopharm (EX1) shares tumble following the company’s bid to raise $2.1 million
- The company signed a mandate on Sunday with Alto Capital and Canary Capital to secure the funds via a combination of a $600,000 convertible note, an entitlement issue to eligible shareholders, and a placement of any shortfall by the brokers
- This follows EX1’s recent slash to its monthly spending rates, with its present spending rate now further reduced to around $400,000 per month
- The company says its main operational focus will remain on generating more data to support partnering and due diligence alongside commercial discussions with potential partners
- Exopharm shares topple 70.8 per cent to trade at 1.9 cents at 3:19 pm AEDT
Exopharm (EX1) shares tumbled on Monday following the announcement of its bid to raise $2.1 million.
The company on Sunday signed a mandate with Alto Capital and Canary Capital to secure the funds via a combination of a $600,000 convertible note, an entitlement issue to eligible shareholders, and a placement of any shortfall by the brokers.
Exopharm said it planned to launch a one-for-one entitlement issue to all eligible shareholders at a price of one cent per share to raise roughly $1.5 million.
The convertible note converts to a 20 per cent discount to the entitlement issue price, subject to the full entitlement issue being completed over a 12-month period.
For reference, Exopharm shares were last trading at 7 cents prior to the announcement of the one-cent offer.
Canary and Alto will act as joint lead managers, with proposed fees of five per cent of funds from the entitlement offer and five per cent on placement of shortfall.
Meanwhile, the company is also undertaking a strategic review of the business in an attempt to further reduce costs and find value from its portfolio of intellectual property.
This follows EX1’s recent slash to its monthly spending rates, with its present spending rate now further reduced to around $400,000 per month.
The company said its main operational focus would remain on generating more data to support partnering and due diligence alongside commercial discussions with potential partners.
Exopharm shares toppled 70.8 per cent to trade at 1.9 cents at 3:19 pm AEDT.
