Bresagen rights issue cancelled

Bresagen (ASX:BGN) has cancelled its non-renounceable rights issue which the company had hoped would raise AUD$8.8 million, citing failure to meet the minimum subscription of $2 million.

The company said its board had decided not to use a 90-day shortfall placement period open to directors, as the company's shares have recently been trading below the rights offer issue price of $0.095. All funds received will be returned to shareholders.

The company will instead access the convertible notes facility approved by shareholders in December. A shareholder meeting will be called in May to deal with this and related issues.

Bresagen was reinstated to the ASX in December after being in voluntary adminstration for almost a year following the failed spinout of the company's protein pharmaceuticals business.

The company was rescued by Queensland biotech CBio, which took a 51 per cent stake in the company, as well as funding the convertible notes facility, along with the Australian Technology Investment Fund.