Patrys closes $2.85m capital raising

Patrys (ASX:PAB) has completed the share purchase plan component of a capital raising worth $2.85 million.

The clinical stage biopharmaceutical company fell just shy of hitting the maximum target for the capital raising of $2.9 million.

Proceeds from the raising will be put towards completing a phase I/IIa open label trial of human antibody-based cancer treatment candidate PAT-SM6 in multiple myeloma.

Funds will also be allocated towards supporting outlicensing activities for its most mature product, PAT-SC1, as a gastric cancer treatment, and towards taking another candidate – PAT-LM1 – to the clinical trial stage.

The share purchase plan was launched in July, following the completion of a $2 million placement to institutional investors in June.

Shares in both the placement and the share purchase plan were issued at $0.02 – a discount of $0.002 at the time the placement was announced.

The process followed a $3.4 million capital raising at $0.03 per share, which closed in November last year.

Patrys reported a 31.2% lower net loss for FY12 of $5.1 million, thanks to a 23.3% reduction in R&D costs as the company shifted focus from exploration towards development of its three treatment candidates.

Patrys (ASX:PAB) shares were trading flat at $0.020 as of around 2.30pm on Monday.