Avexa cashing up for clinical trials

Amrad spin off Avexa (ASX: AVX) has raised $2.4 million in a private placement to institutions and sophisticated retail investors, and is aiming to raise up to $7.6 million more through a prospectus placement to new and existing retail and existing institutional shareholders.

The initial $2.4 million placement of 12 million shares was made at an issue price of $0.20 -- more than a 10 per cent discount to the recent trading price. The planned prospectus placement will involve 28 million shares at the same issue price, to raise $5.6 million, plus the capacity to raise a further $2 million through oversubscriptions, with priority for the oversubscriptions to go to existing retail shareholders.

"We are delighted that this initial offering was so well received by the investment community," said Avexa CEO Julian Chick.

Along with the recent $2 million equity stake in Avexa taken by UK-based Shire Pharmaceuticals as part of the deal which saw Avexa in-license a drug for the treatment of HIV currently in Phase II trials, the prospectus placement means that shareholders will have to approve the transactions at a general meeting scheduled for March 22, 2005.

The funds from the various capital raising exercises will be used to kick-start the proposed Phase IIb trial of the HIV drug, with patient enrolment likely to commence mid-year. Results from the trial are expected in the first quarter of 2006, and if all goes to plan, the drug may be on the market by 2009.

The placement is being managed by Wilson HTM Corporate Finance.

Optiscan raises $2.7m

Optiscan (ASX: OIL) has also raised $2.7 million through a share purchase plan offered to existing shareholders.

The SPP followed a private placement which raised $3.9 million in December and gives the company a healthy cash balance of $12 million to finance the production of inventory for the Pentax/Optiscan flexible endoscope and for the expansion into other market opportunities.