Ondine Biomedical Inc (AIM:OBI) Result of Fundraising

Shares of Ondine Biomedical Inc. saw an increase on Friday afternoon following the announcement that the company will be raising funds to advance the commercialization of its primary antimicrobial treatment.

By early Friday afternoon in London, the stock of the Vancouver-based life sciences firm had climbed 37% to 7.00 pence. Over the previous year, the stock had fallen by 63%.

Ondine disclosed its intention to raise at least GBP3 million through a combination of a placing and subscription offer for new shares, priced at 7p each. This price is a 40% premium over the company’s closing share price of 5.00p on Thursday.

The subscription offer has attracted interest from most of the company’s directors, contributing approximately GBP290,000 in total.

The funds raised will be used for general working capital and to assist in the preparation for phase 3 clinical trials, as Ondine seeks to expedite the commercialization of its Steriwave antimicrobial therapy. Additionally, the GBP3 million will help extend Ondine’s financial runway until at least the third quarter of 2024.

Carolyn Cross, the CEO of Ondine, expressed her satisfaction with the support from both new and existing investors, stating that the fundraising addresses the company’s immediate working capital requirements and supports its rapid commercial expansion. She noted that the funding would propel the company’s commercial activities and enhance partnerships with industry stakeholders concerning clinical, financial, and global distribution goals.

Result of Fundraising

Ondine Biomedical Inc. (AIM: OBI), a Canadian life sciences company, is pleased to confirm, further to the announcement made on 3 May 2024, (the “Launch Announcement”), the successful completion of the Placing and Subscription at the Issue Price of 7 pence per New Common Share (the “Fundraising”). The Issue Price represents a premium of approximately 36.6 per cent. to the closing mid-price of the Common Shares on 2 May 2024.

The total gross proceeds of the Fundraising are approximately £3.04 million (C$5.23 million) and the estimated net proceeds are expected to be approximately £2.92 million (C$5.00 million).

The Placing has conditionally raised aggregate gross proceeds of approximately £2.74 million (C$4.71 million) pursuant to the placing of 39,209,992 Placing Shares with new and existing investors. The Subscription has raised further gross proceeds of approximately £0.29 million (C$0.50 million) pursuant to subscriptions received for 4,182,673 Subscription Shares.

The 43,392,665 New Common Shares in the aggregate to be issued pursuant to the Fundraising represent approximately 19.1 per cent. of the existing issued share capital of the Company, or approximately 16.1 per cent. of the share capital of the Company as enlarged by the Fundraising.

All shares issued pursuant to the Fundraising will be issued non pre-emptively under the Company’s existing authorities, and are expected to be admitted to trading on AIM on or around 9 May 2024.

In addition, the Company will issue 21,696,327 Warrants in conjunction with the Fundraising, on the basis of one Warrant for every two Placing Share(s) or Subscription Share(s) purchased. Each Warrant can be exercised over one Common Share within nine months of Admission, at an exercise price of 15 pence.

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