Novogen to raise up to $7.5m in placement

Novogen (ASX:NRT) has launched a share placement to raise up to $7.5 million to help take lead cancer therapy product Cantrixil into the clinic.

The company plans to place up to 80 million shares at 11 cents per share. Each share will come with an attached option exercisable at 12.5 cents.

This price represents a 16.9% discount on the five-day volume weighted average share price leading up to the announcement.

Novogen plans to use the funds to underwrite the transition of Cantrixil into the clinic. Developed by the Novogen-Yale joint venture CanTx, the drug is designed to be injected directly into the abdominal and pleural cavities, targeting cancer stem cells responsible for tumour growth.

Cantrixil is expected to enter the clinic next year in late-stage ovarian cancer as well as patients with malignant ascites associated with late-stage cancers involving the abdominal cavity.

“I am expecting the placement to be well supported, with the funds putting the company into a solid financial position that will allow it to bring Cantrixil into the clinic and through two phase I studies,” Novogen CEO Dr Graham Kelly said.

He said investors responded positively to Novogen’s marketing of the placement ahead of the offer.

Novogen (ASX:NRT) shares were trading unchanged at $0.125 as of around 1.30 pm on Monday.