All That Investors Need To Know - ASX: PAR

Paradigm Biopharmaceuticals Limited (ASX: PAR) announced that it has completed the institutional component of the entitlement offer announced recently, which is fully underwritten and non-renounceable in nature, raising approximately $9.8 million.

The retail component of the entitlement offer was opened on 24th April 2019 and is expected to raise approximately $16.5 million, providing total equity raising under the entitlement offer of approximately $26.3 million. The total allotted shares for the institutional portion of the accelerated entitlement offer were 6,534,260, making the total issue after allotment to 146,833,704. The issue price for both the shares issued under the Institutional Entitlement Offer and the Retail Entitlement Offer was $1.50 per share and are expected to be allotted on 26th April 2019.

The company also announced that the sophisticated and professional investors have committed to invest a total of a further ~$51.5 million at the same price as under the rights issue.

The company, on 15th April 2019, announced an accelerated non-renounceable rights issue to 'Eligible Shareholders' on the basis of one fully paid ordinary share for every 8 fully paid ordinary share held, at an issue price of $1.50 per new share to raise a maximum of approximately $26.3 million (before costs) by the issue of approximately 17,537,431 shares.

The program involved a capital raise of A$77.9 million, including $51.5 million in placement and $26.3 million underwritten accelerated entitlement offer to be used for the clinical trial program of the company.

On the financial performance front, the company incurred a loss of $4,400,269 for the period ended 31 December 2018, as compared to a loss of $3,573,244 in 2017. The revenue from continuing activities stood at $28,140 for the period, an increase of 25.99% over the previous corresponding period. The total assets stood at $20.51 million in December 2018 for the six months, whereas it was $15.19 million in the prior corresponding period.

On the cash flow front, the net cash outflow from operating activities stood at ~$1.96 million in H1 FY19 as compared to ~$1.23 million in the prior corresponding period, with the net cash inflow from financing activities of $9.45 million in H1 FY19 as compared to $4.75 million in the prior corresponding period. The cash and cash equivalents at the end of the financial period, however, increased and stood at ~$9.93 million in H1 FY19 as compared to ~$6.00 million in H1 FY18.

In November 2018, the company raised capital of $9,000,000 through a private placement and In December 2018, it announced positive results from 112 subjects in Phase 2B clinical trial of iPPS in knee osteoarthritis pain.

On the price-performance front, the stock of Paradigm Biopharmaceuticals Limited was trading at $1.600, up 0.946% during the day’s trade (At market close on 26th April 2019). The stock has generated a significant YTD return of 59.90%. The stock performance remained volatile with returns of 104.15%, 31.95% and 7.13% over the past six months, three months and one-month period, respectively. Its 52-week high price stands at $2.149, and 52-week low price stands at $0.361, with an average trading volume of 372,947.


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