LTR Pharma Limited has successfully raised $10.5 million through a share placement to sophisticated and new institutional investors, significantly surpassing initial demand.
The funding, secured at an issue price of $0.73 per share, representing a 13.2% discount to the 30-day volume weighted average price, will be used to advance the clinical development and commercialisation of Spontan, an innovative nasal spray treatment for Erectile Dysfunction (ED).
The funds will facilitate Spontan's regulatory pathways, expand the R&D pipeline, bolster sales and marketing efforts.
Specifically, $2 million is allocated for sales and marketing, $1 million for a telemedicine consumer website, $2 million for R&D expansion, $1.4 million for regulatory studies, $3.47 million for working capital, and $0.63 million for costs of the offer.
Settlement of the placement is expected on 30 Jul.
Chairman Lee Rodne expressed enthusiasm about the overwhelming support from investors and highlighted LTR Pharma's pioneering role in ED treatment with Spontan.
"This capital injection will accelerate our regulatory engagements, strengthen our market entrance strategy through additional head count, develop online product channels, and support partnering and licensing discussions," said Rodne.
"Initially, the company will leverage Australia's Special Access Scheme for early access while exploring global partnerships with major pharmaceutical companies."
Alpine Capital acted as the sole lead manager for the placement.
An Appendix 3B for the placement has been separately released to the ASX. JG
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