Cynata Therapeutics Limited (ASX:CYP) Secures $8.1 Million Placement
Funding and Share Placement Details
Cynata Therapeutics Limited (ASX: CYP) has secured commitments for $8.1 million through an institutional placement. This consists of $8 million from the issuance of 44,444,445 new, fully paid ordinary shares at $0.18 per share, and an additional $0.1 million through a conditional placement for Directors, pending shareholder approval.
Clinical Trial Success
The funding announcement follows the successful completion of a Phase 1 clinical trial for CYP-006TK in treating Diabetic Foot Ulcers (DFU). The trial met its primary goal of safety and showed promising efficacy data, demonstrating improved wound healing compared to standard care.
CEO’s Comments on Future Prospects
Dr Kilian Kelly, CEO and Managing Director of Cynata, expressed gratitude for the strong support from both new and existing investors. He stated, “The support received indicates strong confidence in our various clinical programs and their upcoming catalysts.” He also highlighted the company’s optimistic outlook for upcoming trial results in graft-versus-host disease, osteoarthritis, and kidney transplant over the next 18 months.
Strategic Use of Funds
The capital raised will enhance Cynata’s cash position, supporting ongoing clinical development across multiple programs. It will facilitate engagement with regulatory bodies, advance licensing partnerships, and prepare for future clinical trials.
Market Context
The placement was conducted at a discount to recent trading prices, with a 16.3% reduction from the last closing price prior to the announcement. The date for the general meeting to secure Director Placement approval is set for January 2025.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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