French biopharmaceutical major Poxel has reportedly announced a successful uplift of € 17.7 million through private placement of 2,358,483 new ordinary shares. As part of the capital increase, each share apparently carried a nominal value of € 0.02 for reserved investors with the gross proceeds of the transaction amounting to € 17,688,622.50.
Thomas Kuhn, the CEO of Poxel, has expressed the company’s pleasure for a successful private placement initiative with both US and European investors. The proceeds of this offering are bound to help the company in the development of PXL770 and PXL065 used for treating non-alcoholic steatohepatitis, adds Kuhn.
Poxel Pharma has been awaiting results from its PXL770 PK/PD study, its ongoing Phase 2a clinical trial and the initiation of its PXL065 Phase 2 study for effective treatment of NASH. Kuhn has further expressed the company’s enthusiasm in using its AMPK activator and deuterated thiazolidinedione platforms for evaluation of other metabolic diseases.
As per sources, Poxel has attached a five-year warranty term to the newly issued shares amounting to a total 75% coverage of the company’s issuance. The issue price also includes a discount of 11.3% over the volume weighted average price of Poxel’s shares on Euronext Paris listed over twenty trading days prior to the pricing.
Poxel has selected a period of 120 calendar days for a standstill on the company’s shares. Lock-up agreements have also been signed by Poxel’s Company Officers and Independent Directors with regard to the company’s shares held by them.
Poxel has announced that the new shares will be fungible with the company’s existing shares and also entitled to current dividend rights. The reserved offering was open only to individuals or legal entities from France or abroad who have been known for their regular investment in the pharmaceutical sector. JMP Securities LLC was chosen as the placement agent for the commencement of this transaction.