Australian reproductive biotechnology company Memphasys Limited’s (ASX: MEM) major shareholder Andrew Goodall has entered into a Subscription Agreement with the company to raise $500,000.
In addition, Memphasys has received $586,000 via a loan against its 2023/24 R&D Tax Rebate, with loan funds received in late June and balance of R&D Rebate of ~$1.1M expected to be received in September 2024.
The loan is secured by and repayable out of the 2024 R&D Tax Rebate and attracts a fixed 15% per annum interest rate. It matures on 30 November 2024, however, can be extended by agreement between the lender and Memphasys.
Funds will primarily be used to assist the company in further developing its Felix System, which has achieved repeat commercial sales in Japan and achieved multiple live births across couples in Japan and India.
They will also be used to support Memphasys’s clinical trial of the Felix SystemTM being conducted to support a regulatory submission with Australia’s Therapeutic Goods Administration (TGA), expected to be completed by the end of the current calendar year, with results analysis and regulatory submission to be filed with the TGA as soon as practical post that date.
In addition to the Felix SystemTM, funds raised will be applied to activities associated with the development of its Oxidative Stress measurement system, which is being developed by MEM in conjunction with the University of Newcastle (UoN) under the direct guidance of Memphasys’s Scientific Director and global Andrology expert,
Laurette Professor John Aitken, and Klean Gene Pty Ltd, a company established by experienced animal sector executives Michael Cameron and Rod Wellstead.
A former director of MEM, Mr Goodall is a significant shareholder and long-term supporter of the Company and following the issues shares under the agreement now holds 288,714,397 shares in MEM. This represents ~ 19.98% of the Company’s issued capital.
“We are pleased to have secured these funds to support the advancement of our commercial activities,” Chairman Robert Cooke said.
“To see the Placement conducted at a premium to the 5-day and 30-day VWAP highlights the understanding that our major shareholders have in the value of our product pipeline. Andrew has been, and continues to be, a strong supporter of Memphasys and I would like to thank Andrew for his continued support.
“Memphasys prudently manages its balance sheet and will continue to assess all avenues to increase funding available for developing FelixTM and its wider development portfolio.”
