Living Cell Technologies, the ASX-listed biotech company with New Zealand-based operations, has raised AU$2.8 million (NZ$3.03M) from Kiwi investors to help fund the next phase of its product to treat Parkinson's disease.
The Melbourne-headquartered company sold 54.6 million shares at 5.1 Australian cents apiece to a group of New Zealand-resident wholesale investors and plans to raise more money from existing shareholders through a share purchase plan, it said in a statement.
The placement was at a 10 percent discount to the five-day volume weighted average share price and amounts to about 11 percent of the enlarged share register.
The funds will go towards the next phase in the clinical trial of Living Cell's ENCLOSE product to treat Parkinson's disease, and also to apply for provisional consent to treat paying patients in New Zealand next year.
"LCT is well positioned to bring cell therapies for neuro-degenerative diseases to the market ahead of our competition, and we believe this offers considerable potential value for our shareholders," chief executive Ken Taylor said.
The trial seeks to confirm the most effective dose of the product, define any placebo component, and refine the patient sub-group.
Living Cell plans to begin the trial later this month and has previously said earlier phases showed "clinically and statistically significant efficacy data in patients with Parkinson's one year after ENCLOSE treatment."
The shares rose 1.8 percent to 5.6 cents, and have gained 10 percent this year.