Recapitalisation Led by Sophisticated Life Sciences Investor - Apeiron Investment Group Ltd
Bionomics Limited (ASX: BNO, OTCQB:BNOEF) (Bionomics or Company), a clinical stage biopharmaceutical company, today announced that it has entered into a Subscription Agreement, with Apeiron Investment Group Ltd (Apeiron), the family office of entrepreneur and founder Christian Angermayer with a strong focus, amongst others, on life sciences, to recapitalise the Company and to assist in securing further equity capital (Subscription Agreement).
Apeiron has made significant investments in several European and U.S. based biotech companies over the last few years, with a special focus on the development of novel treatments for various mental health disorders like treatment-resistant depression, anxiety and Post Traumatic Stress Disorder (PTSD), all diseases with a high unmet medical need.
Under the Subscription Agreement, Apeiron agrees to subscribe or procure subscriptions2 of 135,833,000 Shares at an issue price of A$0.04 per Share to raise A$5,433,320 (to proceed in two tranches of 81,500,000 and 54,333,000 shares, the second being subject to shareholder approval). Apeiron also agrees to underwrite further capital raisings by Bionomics within a fifteen-month-period from the Extraordinary General Meeting of Shareholders (EGM) to be convened, with the effect that Bionomics will raise up to A$15,000,000 at a minimum issue price of A$0.06 per Share [subject to Foreign Investment Review Board (FIRB) and shareholder approvals].
As part of the subscription process with Apeiron, and after completion of the second tranche, an entitlement offer will be launched in favour of eligible shareholders (including eligible retail shareholders) providing the opportunity to purchase in pro rata up to 54,333,000 shares at A$0.04 per Share and hence at the same price as the Apeiron subscriptions across the two tranches (subject to shareholder approvals and completion of the second tranche).
If shareholder and FIRB approvals are received, the Company expects to raise approximately A$20.4-A$22 million in aggregate across several tranches (exact amount depending on take up under the entitlement offer), which would ensure that the Company has significant funds to progress Phase 2 clinical trials for the treatment of PTSD and other anxiety and stress-related disorders for its lead compound, BNC210, which recently received Fast Track Designation from the U.S. Food and Drug Administration (FDA) for the treatment of PTSD.