Clinuvel to raise up to A$30 million through rights offering

By Angela McDaniels

Seattle, Sept. 20 - Clinuvel Pharmaceuticals Ltd. will undertake a three-for-seven renounceable rights issue, according to a company news release. Each right will allow the purchase of a share at A$0.385.

If all shareholders participate in the rights issue, the total funds raised will equal roughly A$30 million.

Shareholders of record as of Oct. 10 will be eligible to participate. The rights trading will begin on Oct. 4 and end on Oct. 18, and the rights issue will close on Oct. 25.

The company said the renounceability of the rights issue will allow existing shareholders to either maintain their holdings in Clinuvel or to divest their rights.

Tolhurst Noall Ltd. will underwrite the rights issue for A$25 million, and Absolute Capital Management Funds, an existing shareholder in Clinuvel, has agreed to sub-underwrite the rights issue for the amount of A$25 million, which will allow European institutional investors to participate in the capital raising.

Proceeds will be used to fund the development of CUV1647 in phase 2/3 human clinical trials. The Melbourne, Australia-based biopharmaceutical company is developing the drug for a range of UV-related skin disorders with a focus on Polymorphous Light Eruption.

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