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Phosphagenics announces a Share Placement of up to $A10m
and $A5m Share Purchase Plan
Key Points:
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Phosphagenics to raise up to $A10.0 million via the placement of up to 33.3 million new fully paid ordinary shares at 30 cents per share.
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Phosphagenics plans to raise additional funds via a Share Purchase Plan underwritten to the value of $A5.0 million, or16.7 million fully paid ordinary shares. This Share Purchase Plan will be capped at $A7.5 million (25.0 million new fully paid ordinary shares).
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Both these capital raisings will provide funds for Phosphagenics’ core R&D programs, in particular, its Phase II transdermal insulin trials, as well as for general working capital.
Phosphagenics Limited (“Phosphagenics”) (ASX: POH) (AIM: PSG) has announced that it will raise up to $A10.0 million via the placement of up to 33.3 million new fully paid ordinary shares to leading international and domestic institutions, as well as some sophisticated investors. The shares will be placed at 30 cents per share. BBY Limited is Lead Manager to the placement.
Additionally, Phosphagenics’ Board of Directors is pleased to announce details of the 2006 Share Purchase Plan (“SPP”), which provides eligible shareholders the opportunity to purchase up to $A5,000 worth of new, fully paid shares at 30 cents per share without brokerage costs and at a discount to the market price. The SPP will be underwritten by BBY Limited to a minimum of 16.7 million shares ($A5.0 million) and will not exceed 25.0 million shares ($A7.5 million). Full details of the SPP will be set out in the documentation, which will be mailed to eligible shareholders.
Mr Harry Rosen, Managing Director of Phosphagenics said: "The Company is extremely pleased with the interest shown by both international and local investors in the share placement, and believe this interest reflects a broad confidence in its ability to meet milestones and deliver results, such as the recent successful Phase I transdermal insulin trial in which the Company’s patented technology delivered insulin through the skin in humans.”
“In addition, existing shareholders are to be offered the opportunity to increase their equity in the Company at the same discounted share price offered to investors participating in the share placement.
“The share placement and Share Purchase Plan funds will primarily be used to advance the transdermal insulin technology in Phase II trials and to further develop other core R&D programs as well as providing working capital,” he said.
The R&D programs which will be supported by the raised funds include:
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Transdermal TPM-02/insulin - small scale Phase II studies in Australia in the first half of 2007, following on with larger studies in the US.
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The preparation and filing of a US Food & Drug Administration Investigational New Drug Application for TPM-02/Insulin.
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Transdermal morphine - completion of the Phase IIa study in early 2007.
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GTP-0805 – progression to a Phase I study planned for third quarter 2007.
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APA-01/Statin – progression to a Phase I study planned for fourth quarter 2007.
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Development of a patch system for applying Phosphagenics’ transdermal delivery technology to the skin.
ENDS….
APPENDIX AND NOTES TO EDITORS
About the Share Placement
The Australian share placement will be managed by BBY Limited.
These new shares are expected to commence trading on or around Tuesday 19 December 2006 and will bring the total number of fully paid shares on issue to approximately 580.1 million.
About the Share Purchase Plan
Phosphagenics’ Board of Directors has resolved to activate the Share Purchase Plan (“SPP”) to give eligible shareholders the opportunity to top up their holdings in the Company’s shares at a price of 30 cents per share. Registered holders may subscribe for up to $A5,000 worth of new, fully paid ordinary shares without brokerage costs and at a discount to the market price. The number of shares to be issued under this underwritten SPP will be a minimum of 16.7 million and a maximum of 25.0 million.
The right to participate in the SPP is available exclusively to Australian, New Zealand and United Kingdom shareholders who are registered as holders of fully paid ordinary shares as at 5.00pm (Australian Eastern Standard Time) on 18 December 2006. Full details of the SPP will be set out in the letter which will be mailed to eligible shareholders.
The key plan dates are:
1: Record date to establish entitlement to participate – 18 December 2006
2: Despatch of documents to eligible shareholders - 20 December 2006
3: Closing date – 19 January 2007
4: Issues of shares (subject to cleared funds) – 24 January 2007
5: Trading of new shares – 29 January 2007
This plan is being underwritten to the value of $A5.0 million (16.7 million shares) by BBY Limited.
About Phosphagenics Limited
Phosphagenics is a Melbourne-based, globally driven biotechnology company focused on the discovery of new and cost effective ways to enhance the bioavailability, activity, safety and delivery of proven pharmaceutical and nutraceutical products.
Phosphagenics’ core technology is built around the science and application of phosphorylation, a process where the addition of a phosphate group has been found to enhance the bioavailability, activity and safety of existing pharmaceuticals and nutraceuticals, as well as to assist in the production of drug delivery platforms.
Phosphagenics’ shares are listed on the Australian Stock Exchange (POH) and the London Stock Exchange's Alternative Investment Market (PSG). An ADR – Level 1 program has been established in the US with the Bank of New York (PPGNY) for US investors to trade in Phosphagenics’ stock on the ‘over-the-counter’ market.
For more information, please visit Phosphagenics’ web site at
www.phosphagenics.com
Contact details:
Mr Harry Rosen
Phosphagenics Ltd
Managing Director
+61 3 9605 5900 or +61 (0)421 322 757 | 
