Austcancer raises $3.8m

Australian Cancer Technology (ASX: ACU) has announced it will raise AUD$3.7 million, placing 9.5 million fully paid ordinary shares with UK-base Mercury investments at AUD$0.40 per share. The company has also placed 1.7 million three-year options, exercisable at 60 cents per share.

Over sixty per cent of the issue was placed with Mercury Investments and the remaining 3.75 million shares were underwritten by Australian-based corporate advisors, Jaguar Advisory Services. Mercury and Jaguar received 1 million and 653,880 options respectively.

“The capital raising places the company in a strong financial position to continue its overseas expansion into the lucrative US and European markets.” said AustCancer’s Managing Director, Paul Hopper. “There are also opportunities to accelerate both R&D and commercialisation activities in the anti -idiotypic cancer vaccine field. It will also allow us to accelerate the development of our unique range of nutritional supplements, revisys, which commenced sales in the United States earlier this year,” he said.

Mercury Investments is an international investment fund based in London and incorporated in Hong Kong that focuses on identifying and investing in undervalued companies in the biotechnology and information technology sectors which have promising products and technologies.

The shares were placed through Australian-based corporate advisors, Jaguar Advisory Services and New York-based securities dealers, Hunting Party Securities.