1st Nov 2024 10:47
(Alliance News) - Ondine Biomedical Inc on Friday revealed a proposed fundraise as it looks to fund a phase 3 clinical study in the US.
Ondine Biomedical is a Vancouver, Canada-based life sciences company specialising in light-activated antimicrobial therapies.
The AIM-listed firm said it is looking to raise a minimum of GBP8.5 million from new and existing shareholders through a placing and subscription of at least 100 million new shares, 36% of its existing total. The majority of Ondine directors intend to participate, contributing GBP210,000 to this.
The new shares will be issued at a price of 8.5 pence a share, representing a 1.5% premium to yesterday's closing price of 8.38p. Shares in Ondine are up 8.8% at 9.11p on Friday morning in London, giving it a market capitalisation of GBP25.5 million.
The funds will primarily be used to sufficiently capitalise the business to conduct its US phase 3 clinical study of its nasal photodisinfection system, Steriwave.
A further GBP2.8 million from a previous placing announced in September is expected to settle in early November, bringing the combined placing amounts to at least GBP11.3 million.
Ondine said this figure is sufficient to not only fund the clinical study, but to drive commercialisation in approved markets, support its working capital needs and secure the firm's cash runway into mid-2025.
Ondine expects to announce the result of its fundraising later Friday.
It also is aiming to finalise ongoing discussions with a large US healthcare group, which it didn't name, for an investment of up to GBP3.1 million to further secure its runway until the second-quarter of 2026. Should this fall through, Ondine explained, the firm "will explore alternative funding options to extend the cash runway beyond mid-2025."
By Christopher Ward, Alliance News reporter
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