Sydney's Biotron Ltd. is planning to raise about A$1.5 million via a rights offering.
Eligible shareholders will be offered 1 new share and 1 attaching listed option for every 4 existing shares they hold as of May 16.
The issue is priced at 1.5 Australian cents per share — a 42% discount to the one-month volume weighted average price of the company's stock.
Shareholders can apply for additional securities in excess of their entitlement, but allocations are not guaranteed. The issue is partially underwritten up to A$800,000.
Directors of the company have indicated their intention to participate in the issue.
Biotron plans to use the net proceeds for the expansion of its hepatitis B virus program and for general corporate purposes.
CPS Capital Group Pty. Ltd. is acting as lead manager and underwriter related to the issue.