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Fennec Pharmaceuticals closes $7.6M private placement of common shares

Fennec Pharmaceuticals Inc. completed a nonbrokered private placement of 1.9 million common shares, priced $4.00 apiece, for gross proceeds of $7.6 million.

The placement was led by venBio Select Advisor LLC and included existing and new investors.

The company plans to use net proceeds for the development of sodium thiosulfate, or STS, and for general working capital purposes. The company is studying potential benefits of STS in pediatric cancer patients.

In connection with the placement, Essetifin SpA bought an additional 300,000 shares, increasing its stake in Fennec to 2,931,579 shares.

Prior to the offering, the company had 13,707,306 outstanding shares.

The shares issued are subject to a hold period, which will expire four months plus one day from the closing date.