capital raising, page-69

The Placement will be conducted at $0.24 in 2 Tranches pro rata to all participants:
• The first Tranche will raise approximately $6.9 million through the issue of approximately 28.8 million new ordinary shares
• The second Tranche will raise approximately $5.1 million through the issue of 21.2 million shares
•
The SPP will be priced at the lower of the Placement price or a 7.5% discount to ACL's 5 day closing price prior to the date of issue of SPP shares.
•
After starting a Phase III cancer trial, the company will restructure with the objective of releasing the full value of fondaparinux for investors and facilitate the recognition of the significant value in the company’s world class oncology development pipeline. Alchemia Oncology will be spun out in the first half of 2012 and listed on a public exchange (US/Australia). Alchemia’s major asset will be fondaparinux post the spin out of its ongology asset and thereafter there will be a focus on returning funds to shareholders through dividends.
•
Participants in the Placement shall have a right to be issued with non-transferable unlisted options to subscribe for fully paid ordinary shares in Alchemia Oncology Pty Ltd if de-merged by 31 December 2012 (Oncology Options) with an aggregate value of up to 50% of the amount invested through the placement. Refer slide 35 of the presentation for full details of the Oncology Options. Participants in the SPP will not have the right to participate in the issue of the Oncology Options.
•
The placement is restricted to sophisticated, professional and experienced investors.

Proceeds from the Capital Raising will be used for:
• Clinical Development: Initiation and execution of pivotal Phase III trial; Continuation of Phase II investigator led trial in SCL and; Finalisation of HA-Irinotecan manufacturing process.
• Research: Intellectual property; Background spend on oncology and; some VAST.
• Working capital purposes including: Corporate transaction expenditure (listing of Alchemia Oncology); Business development (HA-Irinotecan) and; Corporate overheads, listing fees, property etc.
• Issue Costs