Paragon Equity acquires 10% of BresaGen

Adelaide-based venture and development capital firm Paragon Equity has invested more than $AUD850,000 to acquire a 10 per equity holding of Adelaide biopharma BresaGen (ASX:BGN).

The investment consists of an issue of 13.9 million shares in new equity. Ten million shares result from the purchase and conversion of five convertible notes which were approved by shareholders on May 24 and converted at $0.05 per share.

The further 3.9 million shares were acquired at $0.09, a 10 per cent discount to the five day volume weighted average price of BresaGen's stock.

Subject to shareholder approval, Paragon Equity has also been granted over 3.9 million unlisted options at an exercise price of $0.12 with a five year expiry date.

"The investment into BresaGen is a long-term investment for Paragon," said Paragon Advisory executive chairman Greg Boulton in a statement.