Bionomics Raises More Funds Through Share Purchase Plan

Bionomics has completed the share purchase plan which was first announced on 9 November 2018. As per the company’s announcement to Australian Securities Exchange, a clinical stage biopharmaceutical company, Bionomics Limited (ASX: BNO) announced the successful raising of  $250,000 under its Share Purchase Plan that closed on 6 December 2018. However, the shares to be issued under SPP are pending for allotment on 13 December 2018.

This share purchase plan forms part of Bionomics’ recapitalization activity which includes the initial placement of approximately $7.9 million to BVF Partners L.P at an issue price of $0.1637 per share. Moreover, under the top-up right, BVF Partners applied to acquire additional 12,072,580 shares to hold up to 19.9% of Bionomics on a post-placement basis. As a result, the total placement to BVF Partners increased to total proceeds of $9,849,786, consisting of 60,169,738 new shares.

Under the Share Purchase Plan, the company entitled each eligible shareholder to purchase up to $15000 of new Bionomics shares at a price of $0.155 per share, reflecting a discount of 5.3% to $0.1637.

Bionomics Limited entered into Strategic partnership with Merck & Co. for Cognition therapeutic candidate entered clinical development. It included the payment of $505 million upfront and milestone payment on the net sales of drugs. The agreement covers research on BNC375 and related compounds to target cognitive impairment in Alzheimer’s and Parkinson’s and other conditions. In the BNC210 Phase 2 trial in Agitation, the company identified that BNC210 was safe and well tolerated in 193 subjects with PTSD.

In AGM presentation, the company informed that Bionomics has achieved substantial reduction in the October 2018 pro forma monthly pre-financing cash burn. It was further indicated that BNC210 R&D cost savings from ceasing activities other than agitation have also been achieved and net cash runway is now extended to mid-2020.

Bionomics Limited is a health care company that focuses on the treatment of cognitive disorders including central nervous system (CNS) and cancer using its platform. Through drug discovery and delivery segment, the company identifies, develops and commercializes drug candidates to treat CNS disorders, such as depression, anxiety, and Alzheimer’s Disease among others related disorders. As at 31 October 2018, pro-forma cash and cash equivalents of the company was $27.1 million, reflecting an improvement of $12.0 million in pro forma net cash.

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The stock of Bionomics Limited last traded at $0.110 with market capitalization of $59.74 million (as at December 10, 2018). BNO’s stock has witnessed a massive performance change of negative 72.50% over the past one year. Whereas, in the recent three months, it is down by 79.05%.

On December 11, 2018, the stock was up 4.5% during early trade and it seems investors are trying to leverage the lower levels in the price. The earnings per share of the stock has been in the negative zone at around -0.050 AUD. While the group does not intend to pay dividends as the key focus is investing into R&D, BNO aims to improve the financial as well as equity performance going forward.


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