QRxPharma Limited Announces A$21.6 Million Fully Underwritten Capital Raising
QRxPharma Limited (ASX: QRX and OTCQX: QRXPY) has today announced the completion of an underwritten institutional placement raising A$8.0 million which was significantly oversubscribed. The Company has also launched a fully underwritten 1 for 5 renounceable rights issue to raise a further A$13.6 million. The combined Placement and Rights Issue will raise A$21.6 million.
The issue price under the Placement and Rights Issue is A$0.80 per share; a 33.3% discount to the last closing price of QRxPharma shares on 10 November 2009.
The Placement and Rights Issue are fully underwritten by RBS Morgans CorporateLimited.
QRxPharma intends to use the proceeds from the Placement and Rights Issue for funding the Phase 3 drug development and expenditure programme for its MoxDuoTM IR (immediate release dual opioid) product. This includes the lodgement of a New Drug Application with the US Food and Drug Administration in 2010, and for additional working capital purposes.
QRxPharma plans for launch of MoxDuoTM IR in the US marketplace in 2011. MoxDuoTM IR is intended for the management of moderate to severe acute pain. QRxPharma's product pipeline also includes intravenous (IV) and controlled release (CR) formulations which are in earlier stages of clinical development.
QRxPharma CEO and Managing Director, Dr John Holaday commented, "It is pleasing to see the support we have received from the market for our capital raising. We welcome many new institutional shareholders to our register and look forward to them sharing our success as we progress towards the commercialisation of our lead compound MoxDuoTM IR. We are encouraged by this strong level of support for the
commercialisation of MoxDuoTM
Dr. Peter Farrell, Chairman of QRxPharma, stated, "This offering enables the Company to complete the MoxDuoTM IR pivotal Phase 3 clinical trials as we continue the development of MoxDuoTM IV and MoxDuoTM CR, to address pain management from hospital to home." He continued, "Recent clinical trials have exceeded our expectations in demonstrating that MoxDuoTM IR provides superior pain relief with significantly fewer side effects than morphine, oxycodone and Percocet® in post-surgical pain following bunionectomy and total knee replacement. These results have attracted the attention of investors and potential strategic partners."
Rights Issue
The Rights Issue will give all QRxPharma shareholders the opportunity to acquire 1 new QRxPharma share for every 5 existing QRxPharma shares held on the Record Date (24 November 2009) at the issue price of A$0.80 per New Share. This is the same price paid by investors in the Placement. Participants in the Placement will also be eligible to participate in the Rights Issue.
The Rights Issue is renounceable, which means that rights may be traded on the ASX or otherwise transferred if shareholders do not wish to take up some or all of the
New Shares to which they are entitled. Shareholders who take up their full entitlement will be able to apply for additional New Shares at the same issue price, being A$0.80 per share.[1][1]
New Shares issued under the Rights Issue will rank equally with existing ordinary shares on issue.
Post the Placement and Rights Issue, QRxPharma's net cash position will be $33.7 million.
Further details regarding the timetable for the Rights Issue are included in the Annexure to this announcement.
RBS Morgans Corporate Limited was Lead Manager and Underwriter to the Capital Raising.
[1][1] Additional shares will be subject to availability. Applications for additional shares may be scaled at the sole discretion of
QRxPharma Limited and RBS Morgans Corporate Limited.