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Bionomics in $16 million capital raise to progress PTSD trial

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Adelaide-based drug, research and development group Bionomics is raising $16 million in capital from North American and European investors ahead of its latest PTSD drug trial in mid-2021.

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In an announcement to the ASX this morning, the mental health treatments startup said it had entered into placement agreements with a number of North American and European investors to raise $15,991,634 through new shares issued at $0.145 each.

The capital raise is expected to be complete by February 26.

Bionomic executive chairman Errol De Souza told InDaily eligible shareholders would be able to purchase new shares at the same price in the coming weeks through an entitlement offer.

The Adelaide biotech company aims to develop improved treatments for central nervous system disorders, including anxiety, depression and Alzheimer’s disease.

Its flagship drug – BNC210 – has been adapted into a tablet form following an unsuccessful trial of the medication as a liquid in 2018.

It’s hoped the new medication will assist in the treatment of Post Traumatic Stress Disorder (PTSD).

De Souza said the latest treatment was expected to be trialled by roughly 200 patients in the US over 18 months.

“We are pleased to have gained further support from overseas investors as we pursue a treatment for patients suffering from PTSD,” De Souza said.

“The placement was strongly oversubscribed and, as such, we were able to substantially minimise dilution to all our current shareholders by limiting the placement to 15 per cent of the outstanding shares versus the shareholder approved sale of up to 250 million shares.”

German psychedelic treatment advocate Christian Angermayer through his family office, Apeiron Investment Group, has underwritten the placement.

Bionomics and Apeiron entered into a subscription agreement in June worth up to $22 million.

The Group also agreed to assist Bionomics in securing further equity to fund the BNC210 Phase 2b clinical trial.

“We are pleased to support Bionomics both as an underwriter in this placement and as a long-term shareholder of the Company,” Angermayer said in a statement.

“We look forward to participating in the Entitlement Offer alongside other investors. PTSD and other mental health disorders are enormous burdens for those that live with them.

“Bionomics’ lead drug BNC210 has already received fast track designation from the FDA and I am confident of the strong potential of the upcoming Phase 2b PTSD trial to drive value for both patients and shareholders.”

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