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Novogen rights issue secures future drug R&D
THE US-Australian drug discovery and development company, Novogen Limited, has completed a successful non-renounceable pro-rata rights issue, to the tune of more than $17 million, to help secure its global research and development plans.
Novogen chairman and chief executive officer, Graham Kelly said it was a great result for the company and showed the high level of shareholder support for the company’s long term ambitions. 
“It demonstrates the high level of support that we have in our shareholder base,” Mr Kelly said.
“This outcome, combined with the recent placement of approximately $15.5 million to a number of US institutions, brings the company's cash position to approximately $45 million.
“This has delivered the security the board has sought for the company by quarantining in it from the uncertainties of the market over the next few years. We now have the security of being able to proceed with our R&D programs and our plans to turn Novogen into a global biotech company.”
Novogen’s shares trade on both the Australian Securities Exchange (NRT) and Nasdaq (NVGN). The Novogen group includes US-based, CanTx Inc, a joint venture company with Yale University.
Novogen has two drug technology platforms yielding drug candidates that are first-in-class with potential application across a broad range of degenerative diseases. In the oncology field, the ultimate objective is to see both drug technologies used in combination as first-line therapy across most forms of cancer, with the objective of preventing tumour recurrence.
The rights issue entitlement was announced on April 21, offering up to 58,971,207 new shares at an issue price of $0.30 per share and a set of short-term and long-term new options. Fully subscribed, the offering was designed to raise a maximum of $17,691,362 .
Novogen received acceptances for a total of 56,742,571 new shares, raising $17,022,771.
The shortfall under the rights issue was 2,228,636 new shares and these ‘shortfall shares’ were placed with Australian institutional investors on June 2, raising an aggregate of $668,591. Lodge Partners acted as lead agent to place the shortfall shares.
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