Sep 30, 2020

Starpharma completes oversubscribed A$45M placement - SPP to follow

Starpharma completes oversubscribed A$45M placement - SPP to follow


  • Successfully raised A$45 million via an oversubscribed institutional placement
  • Strong support from existing and new investors, including large Australian, global and US funds
  • Share Purchase Plan (SPP) to follow, to enable retail investors to participate in the financing at the same share price as the placement
  • Use of funds primarily to accelerate the development, regulatory and commercialisation activities for the COVID-19 nasal spray, development of multiple, high-value DEP® clinical assets, and DEP® pipeline expansion

Melbourne, Australia; 30 September 2020: Starpharma (ASX: SPL, OTCQX: SPHRY) today announced that it has raised A$45 million via a placement to domestic and international institutional, sophisticated and professional investors (“Placement”). Eligible shareholders will also have the opportunity to participate, at the same price, through a Share Purchase Plan (SPP) which is expected to raise approximately A$5 million.

The Placement was oversubscribed with strong demand from existing institutional shareholders while also bringing new large domestic and international funds on to the register. The Placement was conducted at $1.50 per share, representing a 6.5% discount to the last closing price ($1.605 per share) prior to Starpharma’s shares going into a Trading Halt on 28 September 2020. The Placement will result in the issue of 30 million new shares bringing the Company’s total issued capital to 402.8 million shares.

The new funds will be directed to the rapid development, regulatory, commercialisation activities and launch of the SPL7013 COVID-19 nasal spray as well as expediting the pipeline development of new DEP® candidates with opportunities in oncology, radiopharmaceuticals, Antibody Drug Conjugates (ADCs) and other therapeutic areas. Funds will also be used to accelerate important clinical combinations for Starpharma’s three phase 2 clinical DEP® assets, to further expand the commercial opportunity for these products, including DEP® irinotecan.

Starpharma Chief Executive Officer Dr Jackie Fairley said: “The oversubscribed placement saw a high level of demand from offshore funds including large global and US-based funds. We appreciate the strong support from our current shareholders and are delighted to welcome several leading new institutional investors to the register.”

“The funds raised will allow Starpharma to expedite programs across our portfolio, including the novel SPL7013 COVID-19 nasal spray. They will also allow the company to capitalise on value adding clinical combinations in our DEP® portfolio and to advance development of a number of exciting DEP® candidates across radiopharmaceuticals, ADCs and other therapeutic areas. Recent transactions, such as the Immunomedics acquisition by Gilead, illustrate the significant potential value of these areas.”

Bell Potter Securities Limited acted as Lead Manager for the Placement.

Use of funds

The funds being raised will allow the company to fund advancement across all areas of the business including:

  • Expediting the commercialisation, and launch following regulatory approval, of the COVID-19 SPL7013 nasal spray and exploring other presentations (e.g. COVID-19 eye drops) for SPL7013
  • Expediting and advancing DEP® clinical programs to support licensing, including undertaking additional DEP® clinical trial combinations and advancing additional DEP® candidates to the clinic
  • DEP® pipeline development to develop new DEP® candidates to advance into clinical trials (e.g. antiviral, oncology &/or radiotherapeutic)
  • Provide working capital to enhance balance sheet to support activities across the business.

Share Purchase Plan

Starpharma will offer all eligible shareholders the opportunity to subscribe up to a maximum of A$30,000 of shares at the same Placement price of A$1.50 per share without incurring brokerage costs. Shareholders on the Starpharma register at 7.00pm (Melbourne time) on 29 September 2020 (the record date) with a registered address in Australia or New Zealand will be entitled to subscribe for up to A$30,000 worth of shares through the SPP. The Company reserves the right to accept oversubscriptions or scale back as appropriate.

Full details will be set out in the SPP booklet and dispatched to eligible shareholders in the coming days.

Download ASX Announcement: Starpharma completes oversubscribed A$45M placement - SPP to follow (pdf file, 67kb)


This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any securities described in this announcement have not been, and will not be, registered under the US Securities Act of 1933 and may not be offered or sold in the United States except in transactions exempt from, or not subject to, the registration of the US Securities Act and applicable US state securities laws.

 This contains certain forward-looking statements.