I was more than right on PAL. 27% discount on CR. I expect next CR to be at around 40 cents. The main idea is to wither the retail and dilute. 6 years of heavy losses and debt. Palla Pharma raising at steep discount by Sarah Thompson and Anthony Macdonald, a*r.com February 26, 2021 ASX-listed pharmaceutical outfit Palla Pharma was in front of small cap funds on Friday morning, with an $18 million capital raising.Palla is one of three licensed poppy producers in Australia and produces opiate based pain relief medication. The underwritten deal was split between a two-for-nine pro-rata accelerated, non-renounceable entitlement offer to raise $14 million, and a placement to snare the balance.Both the entitlement offer and the placement were priced at 50¢ a share, which represented a 27 per cent discount to Palla’s last close, and a 22.3 per cent discount to the theoretical ex-rights price.Funds were told that Palla’s existing big shareholders – including Washington H. Soul Pattinson, Thorney Investments, Wentworth Williamson and Australian Ethical Investments – had committed to take up their full rights under the entitlement offer.Money raised would be used to pay down debt and boosts the company’s working capital. Morgans is lead manager and underwriter on the offer. Palla is one of three licensed poppy producers in Australia and produces opiate based pain relief medication.
PAL Price at posting:
68.5¢ Sentiment: None Disclosure: Held
