Drug discovery and development company Nyrada Inc (ASX:NYR) has received firm commitments to raise $3.36 million in new equity capital from new and existing professional and sophisticated investors.
The Placement issue price was $0.12 per CDI, representing a 14.3% discount to the last traded price and a 16.2% discount to the 5-day volume weighted average price (VWAP) of Nyrada’s CDIs.
It follows Nyrada’s recent announcement of the completion of preclinical safety studies ahead of a first-in-human clinical trial for its lead drug candidate NYR-BI03. NYR-BI03 has shown strong neuroprotective and cardioprotective preclinical efficacy and is a first-in- class therapy with a novel mechanism of action for treatment.
Nyrada is now finalising its submission to the Human Ethics Research Committee (HREC), a critical step towards commencing this clinical trial which is anticipated to begin in late 2024.
“This year has been marked by significant progress for Nyrada in advancing our lead drug candidate NYR-BI03 towards the clinic,” CEO, James Bonnar, said.
“We are pleased and grateful for the strong demand and interest in Nyrada and appreciate the ongoing support of CDI holders. We welcome new holders and look forward to continuing to update the market on our progress, particularly as we prepare to enter the clinic.”
Nyrada Directors have indicated they will participate in the placement in the amount of $0.07 million of CDIs on the same terms as the Placement CDIs.
Use of proceed
In addition to Nyrada’s existing cash reserves, the company will use the net proceeds of the Placement for the following:
- Completion of Phase Ia clinical trial for NYR-BI03;
- Preparation and submission of Investigational New Drug (IND) applications with the US Food and Drug Administration (FDA);
- Further research and development of NYR-BI03 in cardiac heart disease and other potential indications; and
- Working capital and raise costs.
Canary Capital Pty Ltd acted as lead manager to the capital raise. Foster Stockbroking Pty Ltd acted as a co-manager to the issue.
