Posted: 10 December 2024
Cynata Therapeutics Limited (ASX: “CYP”, “Cynata”, or the “Company”), a clinical-stage biotechnology company specialising in cell therapeutics, is pleased to announce that it has received firm commitments for a placement of 44,444,445 new, fully paid ordinary shares (New Shares) at an offer price of $0.18 per New Share (Offer Price) to raise total proceeds of $8m (Placement). In addition, 638,886 New Shares will be issued to the Directors at the Offer Price to raise a further $0.1m, subject to shareholder approval at a general meeting to be held in early 2025 (Director Placement).
Dr Kilian Kelly, Cynata’s Chief Executive Officer and Managing Director, said:
“We are pleased to announce the placement, which follows the announcement of the successful completion of our Phase 1 clinical trial of CYP-006Tk in Diabetic Foot Ulcers (DFU). The support received from new and existing investors indicates strong confidence in our various clinical programs and their upcoming catalysts. We look forward to announcing the results from our Phase 2 acute graft-versus-host disease trial, our Phase 3 osteoarthritis trial and our Phase 1/2 kidney transplant trial over the next 18 months, and do so confidently supported by a stronger balance sheet.
We were also pleased to announce yesterday our DFU results, which exemplify the commercial attractiveness of the broader Cymerus™ platform, with the Company now having two distinct product candidates that have generated positive clinical data – CYP-006TK in DFU, and CYP-001 in acute graftversus-host disease (GvHD) (which also previously demonstrated very encouraging safety and efficacy data). We eagerly await further results from three more clinical trials, which could also further add to the commercial attractiveness of the Cymerus™ platform, and we look forward to discussing the DFU trial results with various potential partners over the coming months and beyond.
I would like to thank our existing shareholders for their ongoing support and welcome our new investors as we enter this exciting phase.”
Placement and Director Placement Details
The Placement to sophisticated and professional investors will raise $8m million, before transaction related costs.
The Placement comprises the issue of 44,444,445 New Shares at the Offer Price of $0.18 per New Share using the Company’s existing capacity under ASX Listing Rules 7.1 & 7.1A, as follows:
- 26,389,318 New Shares will be issued utilising the Company’s capacity under ASX Listing Rule 7.1; and
- 18,055,127 New Shares will be issued utilising the Company’s capacity under ASX Listing Rule 7.1A.
A further $115,000 worth of New Shares (being 638,886 New Shares) has also been subscribed for at the Offer Price by the Directors of the Company (or their nominees). Any New Shares issued to Directors under the Director Placement will be conditional on shareholder approval for the purposes of ASX Listing Rule 10.11, which will be sought at a general meeting which is expected to be held in January 2025. All of the Directors are participating in the Director Placement.
The total proceeds of the Placement and Director Placement are $8.1m.
Euroz Hartleys Limited acted as the sole Lead Manager and Bookrunner to the Placement (which is not underwritten). Becketts Lawyers is acting as the Company’s Australian legal adviser.
Use of Funds
The proceeds of the capital raising will be applied towards:
- engagement with multiple regulatory agencies (including the FDA) regarding further clinical development of Cynata’s products, including: CYP-006TK for DFU; CYP-001 for GvHD and kidney transplant; and CYP-004 for osteoarthritis;
- activities to progress potential licensing partnerships for Cynata’s products;
- initiation of further manufacturing activities in preparation for potential additional future clinical trials in GvHD, DFU and other potential candidates; and
- working capital and costs of the Placement.
