Metabolic raises another $4.04 million

Melbourne-based Metabolic Pharmaceuticals (ASX:MBP) has raised AUD$4.04 million in its share purchase plan (SSP) which closed last Friday.

All existing shareholders were able to purchase up to $5,000 worth of ordinary shares at a value of $0.61 per share.

Metabolic's board had determined that total proceeds from the SSP would not exceed $10 million, a figure substantially more than the amount actually raised.

Metabolic also recently raised $10 million in a private placement to institutions and sophisticated investors, also at $0.61, which means the company has raised over $14 milion in capital over the last month and has total cash reserves in excess of $20 million.

The company will now be able to complete the phase II dose finding study of its obesity drug AOD9604 planned to start by October this year, and complete the current phase I trial of its pain drug ACV1.

At the time of writing, Metabolic shares were trading at $0.60.