Prana Biotechnology Limited (NASDAQ:PRAN) is seeking to raise approximately A$44.5 million (approx. US$31.4 million). It is for this reason that it has entered into a securities purchase treaty with Life Biosciences. The Boston based lead investment firm will invest about US$7.5 million, and other investors will put in around US$2 million. With a total of US$9.5 million, there is still a balance of (approx. US$31.4 million). This will, however, come from Life Biosciences and other investors in the form of short-term warrants.
The financing by Life Biosciences will come in handy in accelerating Prana’s drug development programs. It is one of the significant milestones in the company’s efforts to tackle the neurodegenerative disease. Prana is on the right pathway into redeeming a new generation of neurodegenerative drugs. This is according to the Chief Executive Officer of Life Biosciences, Tristan Edwards.
The two companies are focusing on developing novel therapies, technologies, and drugs
Life Biosciences is a private US biopharmaceutical company while Prana Biotechnology Ltd Company. The two are giants in their respective fields and have so many resources into the industry. On the other hand, they have a common goal of fighting the eight pathways of age-related decline (ARD). This they will achieve through the development of novel therapies and drugs.
In a particular way, Life Biosciences addresses the systemic breakdown of the body, which more often comes with aging. The presence of Edwards will boost the company’s goals and objectives; thanks to his extensive knowledge in financial capital markets globally. The co-founder of Life Biosciences, Dr. David Sinclair AO is also thorough in on aging and age-associated diseases. He is one of the leading researchers globally.
The entitlements of the transaction
Life Biosciences will be entitled to holding at least 20% of the Ordinary Shares on issue. This is in addition to the nomination of up to three directors to the Company’s board. There will be an issuance of nearly 272 million new fully paid ordinary shares in Prana’s capital. The shares would be issued at A$0.0390 (3.9 cents).
Meanwhile, it is only the approval by Prana’s shareholders and through a general meeting that shall endorse completion of the agreement.