- SUDA is conducting a ~$3.56 million capital raising via a non-renounceable entitlement offer.
- The capital raising is likely to fund the development of Anagrelide and other OroMist® assets, potential development and acquisition of new assets and meet general working capital.
- SUDA has also appointed Dr Michael Baker as the director to the Board, effective from 1st July 2020.
- Backed by a highly efficient board and management team, SUDA intends to add additional projects in its portfolio going forth.
Australia’s oro-mucosal drug delivery leader, SUDA Pharmaceuticals Limited (ASX:SUD) has recently announced a non-renounceable entitlement offer to raise about $3.56 million via issue of ~142 million new ordinary shares in SUDA, at an attractive offer price of $0.025 per share.
The offer price represents a 34.3 per cent discount to volume weighted average price (VWAP) of SUDA’s shares over the past 15 trading days to 2nd July 2020.
SUDA is an international leader in reformulating and providing medication through the oral mucosa, which uses its exclusive OroMist® technology to develop less-risky oral sprays. The Company holds a vast knowledge of proven techniques that bolster solubility, including novel solvent systems, particle size reduction, permeability enhancers, solid dispersions and taste masking.
SUDA is strengthening its focus on the oncology space and central nervous system via its current portfolio of assets:
- Oncology: Anagrelide (solid tumours with increased platelet levels)
- Central Nervous System: ZolpiMistTM (insomnia) and Sumatriptan (migraine)
SUDA also performs early stage development work for partners that are seeking to develop oral spray versions of their products. The Company’s existing partners comprise Cann Pharma Australia, Zelira Therapeutics, Sanofi and Laboratorios Ordesa.
Key Details of Entitlement Offer
SUDA has planned to use the proceeds raised from the Entitlement Offer for developing Anagrelide and other OroMist® assets, potential development and acquisition of new assets and for meeting general working capital requirements.
SUDA’s Entitlement Offer involves issue of 1 New Share in SUDA for every 1 Existing Share held by an eligible shareholder on the Record Date (8th July 2020), together with one New Option for every three New Shares issued to raise about $3.56 million (before costs).
Each new option will be listed on the ASX, with an expiry date of 31st July 2022 and an exercise price of $0.05.
Pursuant to the terms of the Lead Manager Mandate, SUDA has engaged Baker Young Limited as the Lead Manager for the Entitlement Offer. Baker Young Limited will also be taking care of placement of any Shortfall Shares that arise as a result of the Offer.
According to SUDA’s CEO, Dr Michael Baker, it is an exciting time for the Company as it continues to develop Anagrelide into pharma-grade oral spray formulation for treating solid tumours and looks to secure TGA approval for ZolpiMistTM in Q4 2020.
SUDA’s Latest Management Changes
In the past one week, SUDA has announced some important changes in its management in line with its growth-driven strategy.
The Company has lately appointed Dr Michael Baker as the director to the Board, effective from 1st July 2020. Dr Baker commenced his role as the CEO of SUDA from 2nd January 2020 following his appointment on 27th November 2019. Dr Baker, who was appointed to drive the business development, will continue to seek new opportunities for the Company.
Besides, SUDA has also appointed Mr Phillip Hains from The CFO Solution as Joint Company Secretary of the Company. However, SUDA mentioned that Mr Joseph Ohayon will continue to serve as Chief Financial Officer and Joint Company Secretary of SUDA.
Backed by a highly efficient board and management team that is well versed in sourcing and evaluating new technologies, SUDA intends to add additional projects in its portfolio going forth. The latest capital raising activity is further likely to set up a good growth profile for the Company, reinforcing the development of its existing projects.
SUD traded at $0.036 on 6 July 2020 (11:20 AM AEST).