Syntara Ltd (ASX:SNT), formerly known as Pharmaxis, has received firm commitments to raise about $10 million via a two-tranche placement at $0.022 per share.
In addition, the company will also offer a share purchase plan (SPP) of about A$2 million on the same terms as the placement, providing all eligible shareholders the opportunity to participate in the transaction.
The funds raised will be used towards the completion of three phase 2 clinical trials in myelofibrosis, scarring and iRBD/Parkinson’s disease as well as for general working capital purposes and capital raising costs.
Emerged from restructuring
Syntara CEO Gary Phillips said: “Syntara has emerged from the restructuring of Pharmaxis having shed more than A$14 million in costs per annum.
“With a significantly lower cost base, this capital raise now provides a cash runway to mid-2025 by which time the company expects to have delivered results from three value-defining phase 2 clinical trials, two of which have recently commenced recruiting.
“I am delighted by the strong support received from existing substantial shareholders who recognised the opportunities available to the company with this extended runway and have increased their ownership position.
“I am also pleased to welcome new investors to our register and look forward to building on this excellent start for Syntara.”
Placement summary
Placement shares will be issued at $0.022 per share, a discount of approximately 15% to the 5-day VWAP up to and including December 15, 2023, of $0.026.
Allotment of shares under tranche 1 is expected to take place on Wednesday, December 27, 2023.
Quotation and trading of the new shares issued under Tranche 1 are expected to take place on Thursday, December 28, 2023.
Allotment of new shares issued under Tranche 2 is expected to take place on Tuesday, February 6, 2024, following an Extraordinary General Meeting to be held in mid to late January 2024.
Bell Potter Securities Ltd and Canaccord Genuity have been appointed as the joint lead managers and bookrunners to the placement.
SPP summary
The SPP will be offered at the same price as the placement, being $0.022 per share. It is expected to open on Friday, December 29, 2023, and close at 5:00 pm (AEDT) on Tuesday, January 30, 2024.
The SPP offer is not underwritten.
Shares issued under the placement and SPP will be issued on the same terms and will rank equally with existing shares.