Invion to raise $15m to fund ongoing Photosoft technology development and expand market reach
Invion plans to use Photosoft to treat cancer and related diseases in Australia, New Zealand and the wider Asia Pacific.
Life sciences company Invion (ASX: IVX) is raising $15 million to continue developing the Photosoft technology and expand its addressable markets for treating cancer and related diseases using the next generation technology.
Invion has executed conditional agreements with RMW Cho Group to co-develop Photosoft, which is an improved next generation photodynamic therapy for treating cancer and other diseases.
The deal is an expansion of an existing co-development arrangement that was inked earlier this year.
RMW will contribute its existing intellectual property and knowledge for Photosoft and Invion will pay $5 million towards the technology’s development.
Invion will also fund any pre-clinical and clinical trials.
RMW and its affiliates will continue financing Invion’s research and development for cancers in relation to Australia and New Zealand as part of a pre-existing agreement.
As part of the arrangement, Invion will have exclusive distribution rights to use Photosoft in the Asia Pacific region to treat cancer and related diseases – expanding its addressable markets beyond Australia and New Zealand.
Invion will also gain right of first refusal over Japan and South Korean markets.
Placement and share purchase plan
To fund its $5 million in Photosoft development costs, Invion has received firm commitments to raise $12 million.
Existing and new professional and sophisticated investors have agreed to subscribe for about 545.45 million Invion shares at $0.022 each – representing an 18.5% discount to the last traded price of $0.027.
It also is a 19.7% discount to Invion’s 15-day volume weighted average price of $0.0274.
For every two new shares there will be one free attaching option that has a $0.04 exercise price and 18-month expiry date.
Once the placement has been completed, Invion’s existing eligible shareholders will be allowed to participate in a share purchase plan that aims to raise up to $3 million. Shares will be issued at the same price and terms as the placement.
Proceeds from both raisings will be used to fund development of Photosoft as well as pre-clinical and clinical trials.