Australia's Progen closes A$34.1M entitlement offer

Brisbane, Australia-based Progen Pharmaceuticals has announced the closure of its 1:9 entitlements offer, raising approximately A$34.1 million ($28.7 million), before expenses.

Progen has now secured sufficient funding to conduct the Phase III development of PI-88 in post-resection liver cancer, as well as the further development of the compound in other indications, and the progression of other product candidates. The company remains on track to begin Phase III enrolment in the second half of this year.

The entitlements offer represented the issue of one fully-paid share for every nine existing shares at an offer price of A$5.74 to ASX-listed shareholders and $4.75 to Nasdaq investors. The offer included one free option, or warrant, for every two shares subscribed for at an exercise price of A$8.40 and an expiry date of May 28, 2010.