Bionomics in the money

Adelaide-based drug discovery and development company, Bionomics, has put itself in a position to fund clinical trials of its two most advanced candidates through the raising of $15 million in capital.

Of that amount, $5.8 million was raised via a private placement of shares to institutional and sophisticated investors at 24c a share, which was the average price around 2 September.

Another $2.2 million comes from a share purchase plan for shareholders that has been fully underwritten by Linwar Securities.

This $8 million in capital raising satisfies one of two outstanding conditions with venture capitalist firm, Start-Up Ventures, for an additional $7 million investment in the company.

All up, that's a neat $15 million, which is over three times the cash position of the company at the end of the last financial year.

This money will go towards funding ongoing clinical trials of Bionomics's two leading drug candidates, BNC105 for the treatment of various cancers and BNC210, for the treatment of anxiety. In a statement released by the company, it expects to run these trials for two or more years on the existing funding.

In the same company statement, it has been announced that chairman, Dr Peter Jonson, will retire from the board in November, to be replaced by board member, Mr Chris Fullerton.