Australian clinical-stage drug development company Noxopharm announced that it has managed to secure an increase in funding from two of its existing New York-based institutional investors, Lind Global Macro Fund LP and CST Investment Funds.
According to the terms of the new agreement, the company has managed to get AU$2.4 million worth of convertible security that has a lock-up period until March 30, 2020.
It has been revealed that the company needed a bit of capital to sign up healthy volunteers for the IND application of DARRT-2/DARRT-3 clinical trials.
Noxopharm had agreed with the two institutions back in July this year, and at the time, the company had secured AU$4,560,000 in convertible security. That being said, Noxopharm has managed to pay off as much as AU$1.8 million of the money raised by way of the original agreement.
After the rise in funding by AU$2.4 million, the current agreement face value now stands at AU$5.16 million, and it has also emerged that a General Security had also been granted to the investors. As per the General Security, the institutional investors are going to have rights over all the assets of Noxopharm except on the intellectual property.
The investors have also been given a total of 2,666,666 options that can be exercised for AU$0.325. Additionally, 1,500,000 common shares have also been issued, which are going to be either returned or credited once the agreement ends.