Cynata Therapeutics (ASX: CYP) informs about capital raising of approximately AU$7 million - Kalkine Media

Highlights

• A placement of New Shares of Cynata Therapeutics at the Offer Price of AU$0.215 per New Share
• A Share Purchase Plan would be available to eligible Cynata shareholders for up to AU$30,000 per shareholder
• There is also one free attaching option (exercise price is AU$0.30) for every two New Shares
• Supported by major shareholders, Board and Management
• Promising efficacy and safety data from initial 6 patients in ongoing diabetic foot ulcer (DFU) trial

Australia's stem cell company Cynata Therapeutics (ASX: CYP) has announced a capital raising of ~AU$7 million which includes AU$5m via a placement to sophisticated and professional investors, and up to AU$2 million via a share purchase plan. Existing investor and specialist healthcare fund Bioscience Managers provided the cornerstone bid, with support by new and existing institutional shareholders as well as Cynata’s senior management and Board members.

The capital is being raised to support Cynata's clinical program and particularly the promising Phase 2 study in acute graft-versus-host disease (aGvHD). ASX-listed shares of the company, under ticker CYP, last traded at AU$0.265 on 3 April 2023.

The Company also announced promising results from an initial analysis of data from the first group of 6 patients in the ongoing trial in diabetic foot ulcers (DFU), indicating CYP-006TK appears to be having a measurable positive effect on wound healing.

Source: CYP ASX announcement dated 6 April 2023 

Placement Details

This placement of around AU$5 million to sophisticated and professional investors involves the issue of nearly 23.3 million new shares (ordinary and fully paid) at the offer price of AU$0.215 per share. Bioscience Managers provided the cornerstone bid and the placement was strongly supported by new and existing institutional shareholders and Cynata’s senior management and Board members.

Bell Potter Securities is the lead manager. Placement participants can also subscribe for attaching Options.

Share Purchase Plan

A share purchase plan of up to AU$2 million would be raised from eligible shareholders (record date is 5 April 2023, 7:00pm AEST). Investors from Australia and NZ can participate, with the entitlement to apply for up to AU$30,000 worth of New Shares. The price would be the lower of AU$0.215 per New Share, or a 2.5% discount to Volume-Weighted Average Price of CYP shares during five trading days up to the Share Purchase Plan’s closing date.

The terms and conditions containing booklet will likely be dispatched by Cynata Therapeutics to eligible shareholders by 17 April 2023, which is the opening date of the Share Purchase Plan. The close date is 5 May 2023, 5:00pm AEST.

Options

There is one free attaching option for every two New Shares issued. The exercise price is AU$0.30 and with an expiry date of 1 April 2025.

The use of funds raised would be toward the proposed aGvHD clinical trial (Phase 2), working capital and to the costs of the capital raising.

Stock price update

CYP shares were trading at AU$0.235 midday on 11 April 2023, up more than 2% from the last close.