Viralytics closes $27m capital raising

Viralytics (ASX:VLA) has completed a $27.1 million capital raising and the company expects the new funds to leave it fully funded through 2016.

The company launched the capital raising in January to raise cash for clinical trials of cancer treatment candidate Cavatak. It included a $23 million two-tranche placement to sophisticated investors and a $4.1 million entitlement offer.

As a result of the placement, Viralytics’ shareholders now include 12 new specialist healthcare investors, the company said.

Bell Potter was lead manager in the equity offering, which involves the issue of 97 new shares at $0.28 per share.

“With important additional capital resources we plan to build further shareholder value by generating new clinical data for Cavatak across a number of cancer types,” Viralytics CEO Dr Malcolm McColl commented.

The company’s clinical trials include CALM, a phase II trial in late-stage melanoma, and STORM, a phase I/II intravenous trial across multiple solid cancer types.

Viralytics is also preparing to commence a randomised clinical trial in melanoma.

Viralytics (ASX:VLA) shares were trading 4.29% lower at $0.335 as of around 1 pm on Friday.