Perth-based burns treatment developer Clinical Cell Culture Ltd has closed its $10 million share purchase plan oversubscribed, as well as raising $3.8 million in a placement, to raise funds for further growth, the company announced today.
Perth-based burns treatment developer Clinical Cell Culture Ltd has closed its $10 million share purchase plan oversubscribed, as well as raising $3.8 million in a placement, to raise funds for further growth, the company announced today.
The Plan, which closed last Friday, offered shares to shareholders at 6.8c, to be used for commercialisation of the company's products and to help drive the FDA approval process in the US
The full text of a company announcement is pasted below
Clinical Cell Culture Ltd today announced that its $10 million Share Purchase Plan, underwritten by Bell Potter Securities Ltd, has
closed oversubscribed.
Under the SPP, which closed at 5.00pm WST Friday 1 December 2006, existing C3 shareholders were offered the opportunity to subscribe for additional shares in C3 with a minimum value of A$1,000 and a maximum value of A$5,000 at a price of 6.8 cents per
share.
Due to shareholder demand in the SPP of $10.1 million - slightly above the $10 million available under the Plan - subscribers will have their applications scaled back slightly on a pro rata basis.
In addition to the SPP, C3 also announced today that it has made a $3.77 million placement to institutional investors, including Hunter Hall Investment Management Limited, and sophisticated investors. The placement was made at the SPP price of 6.8c and
equates to 15% of the Company's capital.
C3 Chief Executive Officer Bob Atwill said: "The placement is a great opportunity to bring on board new institutional investors to strengthen the Company's support base in the capital markets."
The placement - in conjunction with the SPP - will provide C3 with a capital injection of $13.77 million (before underwriting costs) to fund the further growth and commercialisation of the Company.
Mr Atwill said it was pleasing to receive such strong support from retail and institutional investors.
"We are very gratified with the support we have received from our existing shareholders through the SPP," he said.
"The SPP and institutional placement will ensure C3 has the financial capacity to implement our growth strategy in existing approved markets and to fund the regulatory approval process and entry into the lucrative U.S. market.
"The Board is very committed to repaying our loyal shareholders for their support and endorsement of our commercialisation strategy."
Mr Atwill said C3 remained on track to meet the corporate milestones presented at the AGM on the 28 November 2006.
Shares are expected to be allotted by 8 December 2006 and shareholders will receive notice of their share allotment and refund cheques for the over-subscription component within two weeks of the SPP closing.
