Geneva's Addex Therapeutics Ltd. plans to issue up to 12,779,553 new shares, priced at CHF3.13 each, through a private placement.
The company, which develops therapies for neurological disorders, said each share will come with a seven-year warrant to buy 0.45 of a share for CHF3.43.
Addex expects to raise gross proceeds of up to CHF40 million through the offering, which will extend its cash runway through 2022 as well as help advance its portfolio of drug candidates.
Additionally, the company said CHF30 million of the placement size has been committed by certain U.S. healthcare investors. The remaining CHF10 million of shares will be placed through a book-building process.
The offer remains subject to shareholder approval at a meeting scheduled around March 21.
MTS Securities LLC is acting as lead and institutional U.S. placement agent for the placement, with Herculis Partners SA, Kepler Cheuvreux SA, Octavian AG and Semper Finance Group SA as placement agents for Addex.