A week after announcing a sponsored research agreement with University of Pennsylvania, biotech company Chimeric Therapeutics (ASX: CHM) advised the market today that its institutional entitlement offer to raise $7.37m is now complete.
The company plans to use the funds to pay for its under licence and sponsored research agreements, plus phase one clinical trials.
This institutional entitlement offer forms part of Chimeric’s $18.1m one for 3.15 non-renounceable entitlement offer.
Around 43,339,291 fully-paid ordinary shares were issued to institutional shareholders at 17 cents, a 15% discount to Chimeric’s closing price of 20 cents on February 18.
A total of 43,339,291 attaching options will also be issued, exercisable at 25.5 cents with expiry on March 31, 2024.
Shares are expected to be issued on March 1, while the options are expected to be issued on March 18.
Executive Chairman Paul Hopper is understood to have taken up $500,000 of his entitlement.
With the institutional offer now complete, Chimeric will proceed to undertake the retail entitlement offer which is expected to raise up to $10.75m.
Under the offer, eligible shareholders will be able to subscribe for one new share for every 3.15 existing shares held as of February 23.
Shareholders who take up their full entitlement are also entitled to participate in a top-up facility by applying for additional shares in excess of their entitlement.
The retail entitlement offer will open on February 28 and is expected to close on March 11.
Chimeric shares resumed normal trading this morning and an hour out from the close were down -20%.
Chimeric was sold down in today's trading
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