Prana Biotechnology Limited has announced that it entered into definitive agreements with new institutional investors for the purchase of US$20 million of securities through the sale of 4 million ADR's at US$5.00 per ADR.
These agreements also involve the acquisition by the investors of five-year warrants to purchase an additional 3 million ADR's at an exercise price of US$8.00 per ADR.
If exercised, these warrants would raise an additional US$24 million for the Company. The transaction is expected to close upon shareholder approval, which is expected to be obtained promptly.
The placement was made to institutional and professional investors in the U.S., led by OrbiMed Advisors and Xmark Funds. Rodman & Renshaw, LLC acted as the placement agent for the transaction.
Geoffrey Kempler, Executive Chairman of Prana, said, "These additional funds will allow us to independently fund further trials of our MPAC technology, which has shown early promise as a potential treatment for Alzheimer's disease in clinical trials. We intend to accelerate the development of PBT-2, our 'second-generation' product, into clinical trials planned for later this year."