Emyria Ltd (ASX:EMD) has received strong support for its recent placement, securing firm commitments from new and sophisticated investors to raise $2 million (before costs). Alongside the oversubscribed placement, Emyria is also undertaking an entitlement offer to raise around $3.1 million at the same terms.
The placement at $0.075 per share attracted a $500,000 cornerstone participation by long-time supporter of the company, Sixty Two Capital. It also includes 1 free attaching unquoted option for every two shares applied for.
Emyria intends to use the funds raised from the placement and entitlement offer to support its strategic objectives in mental healthcare, particularly in new drug development and in addressing the needs of the estimated 400,000 Australians impacted by severe PTSD.
Its near-term focus is on leveraging our multidisciplinary team and fit-for-purpose facilities to deliver MDMA-assisted therapy, a modality currently showing promise in Phase 3 clinical trials for PTSD.
"Thrilled by support"
Emyria CEO Dr Michael Winlo said, "We're thrilled by the strong support for our recent placement, particularly from our long-term investors. We're equally excited to extend the same investment terms to our shareholders through an entitlement offer.
"This capital will advance our mental healthcare programs, especially our efforts to combat severe PTSD, and accelerate our drug development initiatives.
"Emyria's unique approach serves patients grappling with complex mental health issues while generating revenues and real-world data to lay a solid foundation for our future growth and innovation.”
Use of funds raised
These funds will support patient participation in Emyria's ethics-approved MDMA-assisted therapy trial and its authorised prescriber-led care programs.
The company has already submitted applications for its leading psychiatrists and once drug supply arrives from Canada, treatment can commence since all necessary import permits will have already been obtained.
Funds will support the optimisation of both ketamine-assisted and psilocybin-assisted therapy models and their roll-out across existing sites and new clinical partners. This should bring in new revenue streams and also collect robust data for these emerging treatment approaches.
Part of the funding will also be used to engage healthcare payers, to help demonstrate the cost-effectiveness of Emyria’s care models to enhance patient affordability.
The investment will also advance Emyria’s novel MDMA analogue program, particularly in two leading series - dopamine replacement and first-line treatment of Parkinson’s disease patients and to produce faster-acting MDMA for PTSD treatment.
Finally, the funds will further the clinical trials and registration of its Ultra-Pure cannabinoid products.
Update on EMD-RX5 Phase 3 trial
As mentioned in its last quarterly report, the Phase 3 EMD-RX5 trial faced a slowdown due to delays related to Emyria’s contract drug manufacturing organisation.
The trial was paused due to a discrepancy in dissolution rates between batches. Although both batches meet safety and CBD purity standards, this variance has prompted a thorough investigation.
Initial findings suggest a potential manufacturing variation affecting an excipient, an inactive ingredient used to carry active components. To rectify the issue, a new manufacturing process is being developed, and a fresh batch will be produced and closely monitored for stability. An update on this situation is anticipated by the end of this year.
Emyria's other CBD capsules, RX7 and RX9, remain unaffected by stability or dissolution issues. RX7 has demonstrated remarkable stability and bioavailability, surpassing preclinical assessments of registered CBD products. RX9 is progressing positively, with method development underway.
Both RX7 and RX9 show promise as potent, highly bioavailable oral dose forms of Ultra-Pure CBD, nearing readiness for Phase 1 clinical trials. Emyria says its commitment to maintaining quality and ensuring consistent dissolution rates remains a priority throughout this process.