Prana Biotech raises A$5 million

Australia's Prana Biotechnology says it has reached agreement for the private placement of up to 7.15 million new shares at a subscription price of A$0.70 per share. The securities have been placed to institutions and eligible investors who are clients of Peregrine Corporate and the placement will raise up to A$5 million ($3.3 million) before allowing for costs associated with the issue.

The funds raised will be predominantly applied towards accelerating the company's development objectives, specifically the commencement of toxicology and clinical trials relating to Prana's proprietary suite of metal protein attenuating compounds and for working capital.

Meantime Prana, which earlier this year completed a Phase II clinical trial of an Alzheimer's disease drug candidate, clioquinol (PBT-1), announced that it had identified a new compound, PBT-2, with the potential to be even more effective that its predecessor in Phase Ia testing. The news lifted the firm's share price.