iX Biopharma raises gross proceeds of S$6.7 million from placement

[SINGAPORE] Singapore-based speciality pharmaceutical and nutraceutical company iX Biopharma raised gross proceeds of S$6.7 million in a placement to raise funds for its expansion into the US. 

The group had intended to raise at least S$5 million from the exercise, with new shares issued at S$0.10 apiece. 

The number of new shares to be issued was increased due to strong investor demand, the company said on Tuesday (Oct 28). 

Investors who subscribed for the new shares include Lion Global Investors and Ginko-AGT Global Growth Fund.

The 67 million new shares represent approximately 7.5 per cent of the existing issued and paid-up share capital of the company, consisting of 888.8 million shares. 

iX Biopharma will use S$2 million of the proceeds to finance expenses linked to its expansion into the US, S$1.5 million to purchase equipment, S$1.8 million for general working capital as well as fees and expenses incurred in connection with the placement, and S$1.4 million to repay debts. 

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As at midday break, shares of iX Biopharma were down 3.9 per cent or S$0.005 at S$0.122, after its trading halt was lifted.