Benitec to raise up to $31.5m in placement

Benitec Biopharma (ASX:BLT) has launched a private placement to raise up to $31.5 million to further its ddRNAi development programs.

The company has entered into agreements with some existing Australian investors and some new international investors for a two-stage placement at a price of $1.07 per share.

New international institutional investors include US-based RA Capital Management, Perceptive Advisors, Special Situations Funds and Sabby Management.

The company will place 29.4 million new shares, as well as free attaching options to purchase up to 13.2 million more shares at $1.26 per share.

Half of the shares and options will be placed by the end of the month, while the second tranche will require shareholder approval at a meeting scheduled for 7 April.

Benitec plans to use part of the proceeds to accelerate the development of TT-034, a clinical trial-ready, single-shot treatment candidate for hepatitis C.

The compound was developed by US-based Tacere Therapeutics, using DNA-directed RNA interference (ddRNAi) technology developed by the CSIRO and exclusively licensed to Benitec. Tacere and the treatment candidate were acquired by Benitec in 2012.

Benitec Biopharma’s (ASX:BLT) share price has been growing for most of the year. The price has rocketed from $0.99 last Wednesday to $2.12 as of around 1.30 pm on Tuesday.