Forbes raises funding for pharma developments
raised US$4.65 million by way of a private placement, providing the
company with the necessary resources to 'expand its pharmaceutical
pipeline and continue development of its cholesterol-lowering
compound FM-VP4'.
Canadian biotech firm Forbes Medi-Tech announced today it has raised US$4.65 million by way of a private placement, providing the company with the necessary resources to 'expand its pharmaceutical pipeline and continue development of its cholesterol-lowering compound FM-VP4'.
The placement has resulted in the issuance of approximately 3.13 million common shares at a price of US$1.485 per share, with approximately 1.16 million warrants attached.According to a statement from Forbes, each warrant entitles the holder to purchase one common share of the company at US$1.85 for three years from the date of closing.
A final subscription for an additional 109,090 common shares and 38,182 warrants for gross proceeds of US$162,000 has also been accepted by Forbes which will bring the total placement to US$4.81 million. BioAsia Investments, of Palo Alto, California acted as the lead investor.
"After completing an extensive amount of due diligence on Forbes, we are excited about the prospects for FM-VP4 as well as the growth of Forbes' nutraceutical business," said Dr Albert Cha, partner at BioAsia Investments.
Charles Butt, president and CEO of Forbes Medi-Tech said the strength of these investors and terms of the private placement were "indicative of the investment opportunity that Forbes represents".
Forbes revealed that placement proceeds would also be used to fund further development of its FM-VPx compounds and for operational purposes. Based upon the company's financial position, future revenue and operational outlook, Forbes anticipates that it will have sufficient funds to operate through the end of 2005.
