- Neuren strategises to accelerate its drug development process and trials.
- Neuren is likely to raise funds through placements and SPP.
- The prices for each share issued to investors would be AU$2.05 each.
Neuren Pharmaceuticals Limited (ASX:NEU) shared on Monday that it has received firm commitments from investors to raise a fund worth AU$20 million through placements. The Company had shared on 10 September 2021 that it has entered the ‘trading halt’ phase. However, the Company did not mention the amount that was intended to raise before.
About the placement:
Today Neuren has announced that a total of 9.8 million new fully paid ordinary shares will be issued to eligible sophisticated and institutional investors. Each share would cost AU$2.05.
The purchasing price of the share indicated an 8.9% discount to Neuren’s close price on 9 September 2021, i.e. AU$2.25 per share.
About Neuren’s Share Purchase Plan:
Neuren also revealed in an announcement that it is about to offer a Share Purchase Plan (SPP) to investors. The Company intends to raise AU$2 million. NEU has mentioned that the SPP would allow eligible investors and shareholders to subscribe for shares up to AU$30,000, with each share priced the same as that of placements, AU$2.05.
If the total worth of subscriptions exceeds AU$2 million, Neuren may scale back applications at its discretion.
Neuren’s plan would be open from 17 September to 1 October 2021. The Company will issue and allocate shares on 8 October 2021.
About Neuren Pharmaceutical:
Neuren Pharmaceutical is an Australia-based biopharmaceutical company that operates mainly on providing cures to neurological diseases. It has developed several drugs that cause the relief of neurological conditions.
Meanwhile, on the ASX, the NEU stock closed 4.445% lower at AU$2.150 per share today.
Neuren believed that this funding could be a great source of money that could accelerate the development and increase the value of NNZ-2591. In addition, it would further help the Company to carry out the phase two clinical trial for curing the Prader-Willi syndrome.