Firebrick Raises $1 million via Placement
01 May 2023
- $1 million placement led by Firebrick senior management team with support from sophisticated shareholders
- Funds will support Nasodine clinical trial costs, ongoing AAT appeal expenses and projected working capital for the next 12 months
- Shareholder meeting to be held for approval of director investments
Firebrick Pharma is pleased to announce that it has received binding commitments for a placement of $1 million, comprising 6.67 million shares at $0.15 per share (Placement). The Placement was led by several members of the Firebrick senior management team and supported by existing sophisticated shareholders.
Use of Funds:
The funds raised will be used to complete the Nasodine Phase 3 clinical trial over the next several months, in anticipation of an expected R&D tax incentive payment in September 2023.
The funds will also be used to support costs associated with the Administrative Appeals Tribunal procedures, which are aimed at gaining approval for Nasodine in Australia, and to cover other working capital needs for the next 12 months. There are no fees or advisor commissions payable or associated with the Placement.
Details of the Placement:
A total of 6.67 million new shares will be issued at a price of $0.15 per share. The new shares will be issued in two tranches, the first tranche within the Company’s existing ASX Listing Rule 7.1 placement capacity, to issue 5,610,000 fully paid ordinary shares at $0.15 per share on or about Tuesday 9 May 2023 (Tranche 1 Placement Shares). This represents approximately 3.3% of current shares on issue.
The second tranche, to be issued to the two Executive Directors (Drs Peter Molloy and Stephen Goodall), are subject to shareholder approval at a General Meeting to be held on or about Tuesday 13 June 2023 to approve the issue of 530,000 fully paid ordinary shares at $0.15 per share to each Director (Tranche 2 Placement Shares). The total of 1.06 million shares represents approximately 0.6% of current shares on issue.
“This placement was designed to top up our cash reserves until we receive the R&D tax credit income in September and to ensure we have adequate funding for the next 12 months,” said
Firebrick Executive Chairman, Dr Peter Molloy.
“This placement puts us in a strong position to deliver on our goals and we greatly appreciate the continued support and confidence of many long-standing shareholders.”