Mithra raises €20m through private placement
Women's health specialist Mithra Pharmaceuticals SA has entered into a definitive agreement to raise €20m in gross proceeds via a private placement of 10 million new ordinary shares with Armistice Capital.
Under the terms of the Private Placement, Armistice Capital committed to subscribe for 10 million new shares atz a share price of 2€ per share , of which 7.8 illion shares will be admitted to trading and listing on Euronext Brussels immediately upon their issuance, and the remaining 2.2 million shares will be admitted to trading and listing following the approval of a listing prospectus. In addition, Armistice Capital will receive options, with an 18-month term, to subscribe for an additional 10 million new shares at an exercise price of EUR 2.25 per share. Armistice Capitalwill receive additional options, with a five-year term, to subscribe for 10 million new shares, at an exercise price of EUR 2.25 per share. If the additional options are exercised in full, Mithra would receive another €22.5mn, bringing the total cash gross proceeds from the Private Placement to €65 m.
David Horn Solomon, Chief Executive Officer of Mithra, said: We believe this addresses the current concerns regarding our ability to secure financing for our operations in the short- to medium-term; it demonstrates Mithras strength and ability to raise financing, even during turbulent market conditions.
Mithra said it wants to use the net proceeds to finance the New Drug Application (NDA) filing of Donesta and the organisation of additional Phase II clinical studies to support differentiation for treatment of menopause symptoms related to hair, skin and sexual desire. Futhertmore, the company wants to find new applications of Estetrol, such as in vitro fertilisation (IVF) implantation and exploratory clinical studies on endometrial thickening, as well as the organisation of new pharmacoeconomic Phase II and Phase IV clinical studies to establish safety of E4 (Estelle/Donesta) in breast cancer and blood clotting)- Finally, Mithra Pharmaceuticals seeks to initiate dosing studies for Zoreline.
