Firebrick Raises $800,000 via Placement

  17 May 2024

  • Placement secured with current Firebrick substantial holder
  • Funds will support Nasodine international launches and projected working capital for the next 12 months

Firebrick Pharma Limited (ASX: FRE) is pleased to announce that it has received binding commitments for a placement of $800,000, comprising 16 million shares at $0.05 per share (Placement).

GZ Family Holdings Pty Ltd, an existing substantial holder in Firebrick, has committed to take up 14 million shares ($700,000 of the Placement) and 2 million shares ($100,000) to be placed with four parties associated with GZ Family Holdings Pty Ltd.

There are no fees or advisor commissions payable or associated with the Placement. GZ Family Holdings Pty Ltd has been an investor with Firebrick since October 2022 and became a substantial holder in March 2024. The Placement will increase their holding to approximately 12% of the Company.

“It is encouraging to see a professional biotech investor increasing their commitment to Firebrick,” said Executive Chairman, Dr Peter Molloy. “This funding will bridge us to the RDTI payment expected later this year and should give us a solid cash runway for the next year.”

Use of Funds:
The funds will be used to support ongoing launch costs for Nasodine in the United States and other anticipated international launches of Nasodine over the next 12 months, as well as ongoing working capital. Given the expected R&D tax incentive payment due in September or October this year, the Company projects that it should have sufficient funds for at least 12 months.

Details of the Placement:
A total of 16 million new shares will be issued at a price of $0.05 per share with settlement expected to occur on 30 May 2024. This represents approximately 8.9% of current shares on issue. The issue price of $0.05 represents a discount of circa 24% on the 15-day VWAP to 15 May 2024 and a circa 25% discount to the closing price of $0.067 on 15 May 2024.

In addition, Placement participants will receive one free attaching option (Options) for every two new shares issued (i.e., 8 million Options), with an exercise price of $0.075 (7.5 cents) and an expiry date of 2 years from the date of issue.

The Placement shares and free attaching options will be issued pursuant to the Company’s existing placement capacity under ASX Listing Rules 7.1.