May 21, 2022

Next Science (ASX:NXS) raises $10 million for growth – The Market Herald

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  • Biotechnology company Next Science (NXS) successfully completes a two-tranche institutional placement to raise $10 million
  • About 11.1 million new shares will now be issued to institutional and sophisticated investors at 90 cents
  • Next Science will also undertake a stock purchase plan to raise up to an additional $5 million, with participants able to subscribe for up to $30,000 in stock.
  • The company will use the money to accelerate growth, invest in the business, clinical trials, sales and marketing, and strengthen its balance sheet
  • Next Science ends the day 11.7% in the red with shares trading at 91 cents

Biotech company Next Science (NXS) successfully completed a two-tranche institutional placement to raise $10 million.

The company halted trading activities on February 23, but did not disclose how much it intended to raise or what it would use the funds for once received.

About 11.1 million new shares will now be issued to institutional and sophisticated investors at 90 cents.

This price represents a 12.6% discount for Next Science’s closing price on February 22 of $1.03 and a 15.5% discount to the five-day volume-weighted average price of $1.07.

Phase one raises $6 million while phase two, which is subject to shareholder approval, will consist of a $4 million commitment from lead shareholder Lang Walker.

Next Science will also undertake a stock purchase plan (SPP) to raise up to an additional $5 million.

Although the price is unknown, eligible shareholders will be able to request up to $30,000 of shares priced below the offering price by 90 cents and will receive a 2% discount from the weighted average price. volume over five days.

If the SPP is oversubscribed, Next Science will reduce applications.

The plan is set to open March 4 and close March 23 with shares to be issued March 29 and begin trading on the ASX March 29.

Next Science will use the placement and SPP money to accelerate growth, invest in the business, clinical trials, sales and marketing, and strengthen its balance sheet.

“I am delighted with the strong support for the placement and would like to thank existing shareholders for their continued support and welcome new shareholders to our register,” said Chief Executive Judith Mitchell.

“We are pleased to offer eligible shareholders the opportunity to participate in the capital
raising via the SPP at the same price as institutional and sophisticated investors.

Next Science ended the day 11.7% in the red with shares trading at 91 cents in a market capitalization of $204 million.