Clinical dermatology specialist Botanix Pharmaceuticals (ASX:BOT) is raising $13.5 million through a share placement to support the launch of its lead Sofdra product in the US.
The $222.78 million market capitalisation company will raise the funds via the issue of 103.846 million new fully paid ordinary shares at $0.13 per share.
This issue price marks a discount of 14.1% to Botanix’s 15-day volume weighted average price (VWAP) and a 16.1% discount to its last trading price prior to a trading halt on 23 November 2023.
Botanix says it will use the cash boost to prepare for the commercial launch of its Sofdra sofpironium bromide gel in the States, including marketing and sales materials, telemedicine testing and supply chain elements, and sales strategies.
The company says the new funds will enable additional resources to be engaged to shorten post-approval time to revenue generation.
Sofdra in development for the treatment of primary axillary hyperhidrosis — a condition where excessive sweating occurs beyond what is needed to maintain normal body temperature.
The placement is expected to be settled on 30 November.
Euroz Hartleys acted as lead manager and bookrunner to the placement.
Botanix Executive Chairman Vince Ippolito says: “We are extremely pleased to announce this placement to institutional investors, with the resubmission to Food and Drug Administration (FDA) pending and approval planned for mid-2024.
There are a number of initiatives that need to be completed to ensure a successful launch of Sofdra and revenue growth, and this new capital enables those initiatives to be accelerated.”
“This new capital enables those initiatives to be accelerated”
Botanix Pharmaceuticals is a dermatology company based in Philadelphia and Phoenix.
The company is currently progressing the FDA approval process for its lead product to treat primary axillary hyperhidrosis.
Write to Aaliyah Rogan at Mining.com.au
Images: Botanix Pharmaceuticals