Clinical-stage biotechnology company Tryptamine Therapeutics Ltd (ASX:TYP, OTC:TYPTF) has secured firm commitments to raise A$6 million to accelerate its clinical trial strategy for lead program TRP-8803 IV-infused psilocin.
A placement has secured firm commitments from new and existing professional, sophisticated and institutional investors with the company to issue 300 million new fully paid ordinary shares at A$0.02 per share.
“The funds raised come at an important juncture, given Tryp has now established early momentum in a Phase 1b study with the achievement of key safety milestones, as well as through TRP-8802 focused pathfinder clinical trials,” CEO Jason Carroll said.
“With these funds raised, Tryp is now well positioned with added financial flexibility to execute on the next phase of our clinical trial program.”
The company is now assessing multiple potential clinical trial opportunities, which are planned to commence early next year.
New investors welcomed
Notably, the placement is being cornerstoned by the Merchant Biotech Fund (MBF) and distinguished biotech investor Dr Daniel Tillett, who will also be appointed a non-executive director as part of the placement. Clarke Barlow will step down as a director.
Dr Tillett said: “I am honoured to be able to join the TYP team as they advance TRP-8803 in the clinic for a wide range of difficult-to-treat psychiatric illnesses.
“Psilocin has a long clinician history of utility in treating serious psychiatric disease but it has lacked a viable means of being delivered in a way that is safe and controllable for the patient and clinicians.
“The ability to precisely dose psilocin and safely induce the required neuroplasticity state to affect long-term benefit is a potential game changer for patients who have few or no other treatment options.”
The raise is also being supported by existing major shareholders, Dr Bill Garner, Herwig Janssen and Ludwig Criel, as well as CEO Jason Carroll and company director Chris Ntoumenopoulos.
Non-executive chair Mark Davies said: “On behalf of the board and management, I would like to take this opportunity to welcome new investors to the register and thank existing placement participants for their ongoing support.
“This placement was heavily bid and highlights the significant near-term opportunity that TYP has as a leading psychedelic drug developer and the potential value which can be unlocked on this journey.
“I would also like to welcome Daniel to the board. Dr Tillett has demonstrated considerable support in his placement participation and we look forward to leveraging his expertise in the coming months.
"I also extend my sincere thanks to Clarke, who has provided dedicated service to the company in his role to date. We wish him well for future endeavours.”
Flexibility to further investigate TRP-8803
The raise will provide Tryptamine with the financial flexibility to further investigate TRP-8803’s utility in specific conditions and follows multiple operational milestones including TRP-8803 being deemed safe for use in healthy human volunteers in recently completed Phase 1b study.