Phosphagenics raises $24.1m to fund oxycodone patch trial

Melbourne-based Phosphagenics (ASX:POH, OTCQX:PPGNY) has raised $24.1 million in a placement to institutions and sophisticated investors, including $7 million raised in a placement to an individual Singapore-based investor.

The company will also undertake a $3 million share purchase plan to existing shareholders at 14 cents per share, with an opening of 24 October 2011.

The capital raising will go towards funding clinical trials for the company’s TPM/oxycodone pain patch, which are scheduled to begin next month.

The institutional placement was for 122,539,000 shares at 14 cents per share. This represented a discount of 10 per cent to the 30 day VWAP of 15.7c.

Orbis Capital, Phosphagenics’ largest institutional shareholder, will increase its investment in the company by an extra $5.7 million.

A further placement of 50 million shares at 14 cents per share raising $7 million will be made to a major Singaporean based investor. This placement will be subject to the completion of the institutional placement and shareholders’ approval at a General Meeting.

Phosphagenics (ASX:POH) share price was steady today at 17c as of 1.30pm.