pSivida aims to raise A$29 million via rights issue

New York, May 2 - pSivida Ltd. said it plans to raised A$29 million through a rights issue.

Shareholders will receive non-renounceable rights to buy one new ordinary share for every eight shares held at May 22.

The rights will exercisable at A$0.60 per share, an 18% discount to the 30 day volume weighted average closing price on the Australian Stock Exchange up to May 1 and a 7% discount to the 5 day average.

Excluding the effect of vested options, which may be exercised before the record date, the rights offering could result in the issue of up to 48.25 million new ordinary shares, raising gross proceeds of approximately A$29 million.

The rights issue has a top-up feature allowing eligible shareholders to apply for additional new ordinary shares in excess of their entitlement at the same price.

The offering is not being registered in the United States.

Although the rights issue is not underwritten, pSivida will seek to place any shortfall with institutional and sophisticated clients of U.S. lead manager Janney Montgomery Scott LLC.

Perth, Australia-based pSivida will use proceeds to fund phase 3 clinical trials of Medidur for the treatment of Diabetic Macular Edema and phase 2a clinical trials of its lead BioSilicon product, BrachySil, which is being developed for the treatment of inoperable pancreatic cancer.

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