SYDNEY, Dec. 19, 2014
/PRNewswire/ -- Novogen Limited (ASX:NRT;
NASDAQ:NVGN), Australian/US
biotechnology company, today announced that it has entered
into definitive agreements today to issue securities to existing
institutional investors in the Unites States in a private placement
with gross proceeds of approximately A$1.75
million. This private placement follows a private placement
for gross proceeds of A$4.1 million
that was previously announced on December
17, 2014. Aggregate gross proceeds from the two private
placements are A$5.85 million. The
closing of each private placement is expected to occur on or about
22 December 2014 and is subject to
the satisfaction of customary closing conditions.
Under the terms of the private placements, the Company will sell
an aggregate of approximately 46.9 million ordinary shares at a
price of A$0.125. The Company
also agreed to grant to the investors, options to purchase up to an
aggregate of approximately 46.9 million ordinary shares at an
exercise price of A$0.15 per
share. The options are exercisable for a term of five years,
and the exercise price is subject to future adjustment for various
events, such as stock splits or dividend distributions. The
securities offered and sold in the private placements have not been
registered under the Securities Act of 1933, as amended, or any
United States state securities
laws, and may not be offered or sold in the United States absent registration, or an
applicable exemption from registration under the Securities Act and
applicable state securities laws. The Company has agreed to cause
the registration for resale in the United
States of ADRs containing the ordinary shares and the
ordinary shares underlying the options purchased by the United States investors.
H.C. Wainwright & Co. is the
exclusive placement agent for the offerings.
Dr. Graham Kelly, Novogen Group CEO, said, "This
transaction concludes the round of capital-raising that commenced
about 6 weeks ago. The total amount raised in this round is about
A$7.75M. We had identified this
amount as being the required funding to bring at least one of our
drug candidates into first-in-man studies; all with the objective
of generating the clinical data that hopefully would confirm the
clinical and commercial value of our super-benzopyran drug
technology platform.
"Until our headroom for capital raising is replenished, any
future capital-raisings now will require the approval of
shareholders. To this end, we are investigating the regulatory
issues for a dual-listed company including current shareholders as
the primary source of that funding."
This market release shall not constitute an offer to sell or the
solicitation of an offer to buy securities.
About Novogen Limited
Novogen is a public, Australian drug-development company whose
shares trade on both the Australian Securities Exchange ('NRT') and
NASDAQ ('NVGN'). The Novogen group includes US-based, CanTx Inc, a
joint venture company with Yale
University.
Novogen has two main drug technology platforms:
super-benzopyrans (SBPs) and anti-tropomyosins (ATMs). SBP
compounds have been designed to kill the full heterogeneity of
cells within a tumor, including the cancer stem cells. The
molecular target is a trans-membrane electron-transfer pump
mechanism oncogene that is common to all cancer cells. Cells die by
respiratory distress and mitochondrial disintegration.
The ATM compounds target the micro-filament component of the
cancer cell's cytoskeleton and have been designed to combine with
anti-microtubular drugs (taxanes, vinca alakaloids) to produce
comprehensive and fatal destruction of the cancer cell
cytoskeleton.
The Company pipeline comprises three SBP drug candidates
(TRXE-002, TRXE-009, TRXE-0025) and one ATM drug candidate
('Anisina').
Further information is available on our website: www.novogen.com
For more information please contact:
Corporate
Contact
Dr. Graham
Kelly
Executive Chairman
& CEO Novogen Group
Graham.Kelly@novogen.com
+61 (0) 2 9472
4100
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Media
Enquiries
Cristyn
Humphreys
Operations Manager
Novogen Group
Cristyn.Humphreys@novogen.com
+61 (0) 2 9472
4111
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visit:http://www.prnewswire.com/news-releases/novogen-raises-an-additional-a175m-in-private-placement-to-us-institutions-for-aggregate-private-placement-of-a585m-300012415.html
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SOURCE Novogen Ltd