Paradigm Biopharmaceuticals Launches $2m Share Purchase Plan After $14m Placement

Paradigm Biopharmaceuticals ( (AU:PAR) ) just unveiled an announcement.

Paradigm Biopharmaceuticals has completed a $14 million placement of 73,684,211 new shares at $0.19 each, with investors also receiving free-attaching options that include additional piggyback options upon exercise. The company is now offering eligible Australian and New Zealand shareholders a Share Purchase Plan of up to $2 million at the lower of $0.19 per share or a 2.5% discount to the prevailing VWAP, also with free-attaching options subject to shareholder approval, and may scale back or accept oversubscriptions at its discretion.

Combined proceeds of $16 million from the placement and SPP are earmarked primarily to fund Paradigm’s global Phase 3 clinical trial and NDA-related activities, with the balance allocated to partial repayment of a convertible securities agreement and working capital. The capital raising is expected to strengthen Paradigm’s balance sheet as it advances late-stage development and regulatory milestones, while offering existing retail shareholders an opportunity to participate in the same discounted equity terms as institutional investors, albeit without underwriting and with potential application scale-backs.

The most recent analyst rating on (AU:PAR) stock is a Buy with a A$0.65 price target. To see the full list of analyst forecasts on Paradigm Biopharmaceuticals stock, see the AU:PAR Stock Forecast page.

More about Paradigm Biopharmaceuticals

Paradigm Biopharmaceuticals is an Australian biopharmaceutical company focused on developing late-stage clinical therapies, with a particular emphasis on a global Phase 3 program and related regulatory approval activities. Listed on the ASX under the ticker PAR, the company targets conditions addressable through its proprietary drug candidates, positioning itself within the specialty pharma and advanced clinical development segment.

Average Trading Volume: 1,282,834

Technical Sentiment Signal: Sell

Current Market Cap: A$85.84M

For a thorough assessment of PAR stock, go to TipRanks’ Stock Analysis page.