Botanix Pharmaceuticals taps investors for $40m; Euroz, E&P in tow
Botanix Pharmaceuticals, a listed developer of treatments for skin infections and diseases, was pitching investors for a $40 million equity raise on Monday morning.
Street Talk understands the company had Euroz Hartleys and E&P Capital offering shares at 33¢ each – a 7 per cent discount to the last traded price and 13.8 per cent lower than the 10-day volume-weighted average price. The raise is structured as a single tranche placement to institutional investors.
Sources said a book message, which went out at the launch, said pre-launch bids from existing investors exceeded the total offer size. Key backers include founder Matt Callahan, Antares Capital Partners and Allianz Asset Management.
Botanix told investors the funds would accelerate the commercialisation of Sofdra in the United States – a prescription anticholinergic medicine used on the skin to treat excessive underarm sweating. This includes beefing up its sales force, increasing marketing expenses and stocking up on inventory.The company went into a trading halt on Monday morning at 36¢ per share. Euroz Hartleys and E&P Capital were calling for bids by 3 pm.
BOT Price at posting:
35.5¢ Sentiment: Buy Disclosure: Held
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