SUDA Seeking Participation in $3.56M Capital Raising, Eyeing development of Anagrelide and OroMist Assets

Summary

• SUDA is seeking shareholders’ support to participate in the capital raising activity.
• The Company unveiled a non-renounceable entitlement offer to raise around $3.56 million on 3^rd July 2020, for which the closing date has been extended to 29^th July 2020.
• The recent CEO letter highlighted key strengths of SUDA, including its unique platform technology, strong project portfolio and robust leadership team.
• SUDA intends to leverage its team’s experience and networks to source and acquire additional assets that align with its current areas of focus.

SUDA Pharmaceuticals Limited (ASX:SUD), the global leader in reformulating and delivering medication via the oral mucosa is seeking shareholders’ support to participate in the capital raising activity announced in early July 2020.

On 3^rd July 2020, SUDA unveiled a non-renounceable entitlement offer to raise around $3.56 million via issue of ~142.2 million shares at an attractive price of $0.025, representing a 34 per cent discount to the 15-day VWAP. The offer also involves an attaching option with an exercise price of $0.05 for every three shares subscribed.

SUDA intends to utilise the proceeds from capital raising to develop anagrelide and the OroMist® assets, meet general working capital requirements and source additional technologies to include in its project portfolio.

To ensure shareholders have sufficient time to assess the entitlement offer, the Company has recently extended the closing date of offer from 22^nd July 2020 to 29^th July 2020. Below table demonstrates the revised timetable for entitlement offer:

The recent CEO letter to shareholders highlighted the key strengths of SUDA, as discussed below:

Unique Platform Technology

Dr Michael Baker emphasised that SUDA has its robust OroMist® platform that stands alone and applies to a broad range of drug classes for enhanced drug delivery. The Company’s oro-mucosal delivery platform reformulates existing medications and creates improved bioavailability for the patient.

Robust Project Portfolio

SUDA possesses a robust project portfolio, primarily encompassing ZolpiMist^TM, anagrelide, Sumatriptan and medical grade cannabis.

ZolpiMist^TM is the Company’s most advanced product, which was found to work more efficiently than the tablet form of the insomnia drug in recent clinical data. For ZolpiMist^TM, SUDA signed a licence agreement with Mitsubishi Tanabe Pharma Korea in March this year. The Company also expects to receive a determination concerning its submission for ZolpiMist^TM from the Therapeutic Goods Administration (TGA) in Q4 2020.

Lately, the global life science research group, Edison Research has placed a value of $18 million or $0.13 per share on SUDA, considering only ZolpiMist^TM and the existing territories for which the Company has licence agreements. However, SUDA is actively continuing with additional territories to license ZolpiMist^TM.

In addition to progressing with the commercial roll-out of ZolpiMist^TM, SUDA is also working with a significant drug in the oncology space, anagrelide. This drug holds the potential to lower platelet count associated with poor prognosis when dealing with cancerous tumours in ovarian, breast, pancreatic and lung cancers, affecting 10-57 per cent of patients with solid tumours. Moreover, recent research has shown that reducing the platelet count may play a considerable role in patient’s survival.

In May this year, the patent involving the use of anagrelide in cancer was granted in Japan, complementing the granted patent in Europe. Besides, the Company recently completed a canine pharmacokinetic study with anagrelide to evaluate bioavailability of the drug when administered as an oral spray.

SUDA is also progressing with its partnerships with pharmaceutical firms to reformulate its other products into oral sprays, including Sumatriptan for migraine treatment and Medical Grade Cannabis products. The Company is also continuing projects with Sanofi and Laboratorios Ordesa, the active ingredients of which are not yet disclosed.

Strong and United Board

Board and Senior Management, Source: Company’s Presentation

SUDA’s CEO, Dr Michael Baker highlighted in the letter that he is joined by a solid team of board members at the Company.

SUDA’s current Chairman, Mr Paul Hopper is one of the industry’s leading negotiators and has been a driving force behind success stories like Viralytics Ltd., which was sold to Merck in a half-billion-dollar deal two years back.

Mr David Phillips has brought 35 years of experience to the table, comprising 23 years with GSK. Mr Phillips’ professional ledger demonstrates over 50 pharma/biotech deals and 10 M&A transactions.

In addition, Mr David Simmonds supplements the board with 27 years of experience as an audit partner with Ernst and Young where he operated the capital markets desk with responsibility for reviewing and managing all Australian cross border fund raisings.

SUDA intends to leverage its team’s experience and networks to source and acquire additional assets that align with its current areas of focus. The Company is moving forward with renewed and consistent energy to position itself at the forefront of a novel drug delivery platform.

SUD last traded at $0.027 on 23^rd July 2020.