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ALGORAE PHARMACEUTICALS LIMITED — Capital/Financing Update 2007
Oct 29, 2007
64249_rns_2007-10-29_e666cd8c-ca70-4002-8ef0-3d0118655aa8.pdf
Capital/Financing Update
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Living Cell Technologies Ltd PO Box 3014, Auburn VIC 3123 ABN: 14 104 028 042
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COMPANY ANNOUNCEMENT
LCT announces $6.4m capital placement following positive clinical data
30 October 2007, Auckland, New Zealand and Melbourne, Australia: Living Cell Technologies Ltd (ASX:LCT, OTC: LVCLY) announces that it has closed a further private placement bringing a total of $6.4million in additional share capital to the company.
The terms of the placement provide for up to 17.7 million ordinary shares to be issued at 36 cents per share, conditional upon shareholder approval at a general meeting of shareholders on November 27. This financing is in addition to the investments being made by NaviGroup Management Ltd.
The funds will be used as working capital to further LCT’s DiabeCell[®] clinical trials in Russia and New Zealand, as well as ongoing expansion of the pig breeding herd to meet clinical requirements.
Dr Paul Tan, CEO of Living Cell Technologies, commented, “This investment follows on our release of preliminary positive results for our Phase I/IIa clinical trial for DiabeCell[®] in type I diabetes. We are encouraged by both initial patient response, and the support we are receiving from the global investment community. The combined cash infusion from this placement, as well as our recently announced agreement with NavigGroup will enable us to continue with our clinical development plans as well as enhance and expand our production facilities.”
The Company recently entered into a binding agreement with NaviGroup Management for an initial placement of A$2.2 million, with the option, subject to shareholder approval, for them to invest up to an aggregate amount of approximately A$6.6 million.
The first NaviGroup closing of A$2.2 million is due on or before November 2. The agreement also gives NaviGroup an option, subject to shareholder approval, to subscribe for an additional A$6.6 million in shares at the lower of 20 cents per share or 80% of the 30-day average closing bid price per ordinary share of the Company.
The combination of the NaviGroup investment and the private placement by Taylor Collison could raise up to approximately A$15 million for the Company.
For further information: www.lctglobal.com
Paul Tan Richard Justice CEO Tel:+64 9 276 2690 Mob: 0402 716 984 (AUS) Mob: +64 21 223 4741 021 608 784 (NZ) [email protected] Tel: +64 9 270 7941 [email protected]
Media Relations Daniella Goldberg Buchan Consulting P:(612) 9237 2803 M:+ 61 0416 211 067 [email protected]
About Living Cell Technologies: www.lctglobal.com
Living Cell is developing live cell therapy products to treat life threatening human diseases. The company owns a biocertified pig herd that it uses as a source of cells for treating diabetes and neurological disorders. For patients with type 1 diabetes, the company transplants microencapsulated islet cells so that near-normal blood glucose levels may be achieved without the need for administration of insulin or at significantly reduced levels. The company entered clinical trials for its diabetes product in 2007.
Further background information on the trial is available at http://www.lctglobal.com/news/167.php http://www.lctglobal.com/news/149.php
LCT disclaimer
This document contains certain forward-looking statements, relating to LCT’s business, which can be identified by the use of forward-looking terminology, or by express or implied discussions regarding potential filings or marketing approvals, or potential future sales of product candidates. Such forwardlooking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. In particular, management’s expectations regarding the approval and commercialization of product candidates could be affected by, among other things, unexpected clinical trial results; unexpected regulatory actions or delays, or government regulation generally; our ability to obtain or maintain patent or other proprietary intellectual property protection; competition in general; government, industry, and general public pricing pressures; and additional factors that involve significant risks and uncertainties about our products, product candidates, financial results and business prospects.