Prana Biotechnology Limited (NASDAQ: PRAN) shares rose sharply Wednesday, after the company entered into a securities purchase agreement with Life Biosciences, under which Life Biosciences will invest up to $44.5 million in the company.
News from the Boston-based Life Biosciences indicates that a further amount of up to approximately A$31 million (approx. $21.9 million U.S.) would be invested by Life Biosciences and other investors on exercise of short-term warrants being issued as part of the transaction.
Said Prana CEO Geoffrey Kempler "Life Biosciences' investment in Prana is an important endorsement of the significance of our work in addressing neurodegenerative disease. This financing will potentially allow us to accelerate our drug development programs."
Life Biosciences is a private U.S. biopharmaceutical company which, along with its six "Daughter" companies, is focused on development of novel therapies, technologies and drugs to combat the eight pathways of age-related decline (ARD). Its work addresses health decline due to aging as a systemic breakdown of the body, rather than a series of isolated events and conditions.
The transaction involves an issue of approximately 272 million new fully paid ordinary shares in the capital of Prana representing approximately 34% of the total Ordinary Shares on issue) together with two-for-one free attaching Warrants pursuant to the initial placement. The Ordinary Shares would be issued at A$0.0390 (3.9 cents) and the Warrants would have an exercise price of A$0.0450 (4.5 cents).
Shares hiked 79 cents, or 61.7%, to $2.07
