Geneva, Addex Therapeutics (SIX: ADXN) announced that it has raised gross proceeds of CHF3.2 million (US$3.5 million) in a private placement of 1,170,612 new issued registered shares to international institutional investors with extensive life science experience. The private placement was strongly supported by existing investors including BVF Partners L.P., which manages the Biotechnology Value Fund, and new investors, including Armistice Capital, which as a result of the placement will hold 5.36% of the issued share capital after the transaction, and EcoR1 Capital. Board Members and Executive Management also participated in the private placement.
“These funds have extended our cash runway through 2014 taking us beyond our next significant clinical event, the reporting of Phase 2 ADX71149 anxious depression data which is expected in the first half of the year,” said Tim Dyer, CEO of Addex. “We continue to explore strategic options to advance our portfolio of proprietary clinical and preclinical allosteric modulators, as well as our allosteric modulator discovery technology platform.”
The new shares were placed at CHF2.75 per share, corresponding to a 5% discount to the volume weighted average price (VWAP) during the five preceding trading days prior to pricing. The 1,170,612 new issued registered shares will be listed on the SIX Swiss Exchange and their first day of trading will be the 9 August 2013. The new shares, with a par value of CHF 1 each, were issued from the Company’s authorized share capital and represent 11.5% of the outstanding share capital after the transaction.