LCT to raise additional US and European capital

Following the successful placement of more than AUD$3 million worth of shares in the US earlier this month, cell therapy company Living Cell Technologies (ASX:LCT) has revealed plans to raise at least a further AUD$8 million through a second tranche of shares in the US and Europe.

LCT will hold a general meeting on February 24 for the approval of the issue of 33,333,333 fully paid ordinary shares to clients of US and European investment firms at a minimum issue price of $0.24. The successful placement of the first tranche of shares was at $0.205.

"We enticed new investors at a lower price as a teaser," said LCT CEO David Collinson. "This is the next round of funding -- they can see the upside of the technology and its potential. There is lots of interest. We are currently very undervalued in the US.

"Our aim is to move to the Nasdaq in the mid to short term. Our shareholders are one third each in Australia, New Zealand and the US/Europe. At the moment we are perceived as an Australian company. I think the percentages will move across in the next twelve months to 50-50 -- when [shareholders] see us as a US company they will up-value."

The funds raised will be used as working capital to progress LCT's lead product, NeurotrophinCell (NtCell), into phase I/II clinical trials. NtCell consists of alginate-encapsulated pig choroid plexus (or brain) cells and preclinical trials of NtCell for the treatment of Huntington's disease have shown positive results.