UPDATE: Novogen Says Shares Which Carry Rights Offerings Must be Bought on or before ASX Closes on April 28, 2015
Graham Kelly, Novogen CEO and Executive Chairman, said, "This rights issue, in conjunction with the recent Placement, is intended to give the Company 2 years of funding to underpin its strong growth strategy."
"A successful capital-raising at this time takes away the future uncertainties of the market at such a critical time in the Company's development. With some years before we expect to be generating revenue, we have opted for certainty at a time of strong market sentiment for the Company specifically and the biotech sector generally."
"By the start of 2015, just two short years after we had started, we had spent approximately $10 million developing two new drug technology platforms to the point where we had a good understanding of their potential and had identified 3 lead oncology drug candidates. That speed and that relatively low cost is testament to the capacity and dedication of this Company's staff."
"The Board believes that we now have a responsibility to our shareholders to maximise the opportunities on offer. We will only be taking steps we are confident of taking, but neither will your executive be risk-averse by looking for slow, organic growth. We believe that two exciting new drug technology platforms give us an extraordinary opportunity for growth. The task now is to grow into that opportunity."
"Over the next 2 years, the Company needs an additional $60 million in funding to help bring drug candidates into the clinic for the identified opportunities of treatment of malignant ascites, malignant pleural effusion, malignant melanoma, castrate-resistant prostate cancer, glioblastoma, medulloblastoma, diffuse intrinsic pontine glioma, neuroblastoma, brain damage, SanFilippo Syndrome and muscular dystrophies. Our objective with this current capital-raise is to ensure that we will be in or close to being in the clinic for as many of these indications as it believes it reasonably can within the next 2 years without worrying about funding," Kelly said.
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