iX Biopharma proposes placement to raise gross proceeds of at least S$5 million as it eyes US expansion

[SINGAPORE] Catalist-listed iX Biopharma has proposed a placement of new shares in the company at S$0.10 apiece to raise gross proceeds of at least S$5 million, as it looks to expand its operations in the US.

In a bourse filing on Tuesday (Oct 28), the company said it has entered into a placement agreement with OCBC. As the placement agent, OCBC will procure subscribers for the placement.

The placement price represents a discount of 9.7 per cent to the volume weighted average price (VWAP) of S$0.1107 per share, for trades done on the Singapore Exchange (SGX) from Oct 24 up to its trading halt on Oct 27 – the last trading day before the announcement. 

iX Biopharma intends to use some 40 per cent of the proceeds to partially finance expenses linked to its expansion into the US; 30 per cent will be used to purchase equipment; and the remaining 30 per cent is for general working capital as well as fees and expenses incurred in connection with the proposed placement. 

At the company’s annual general meeting on Oct 24, iX Biopharma said it plans to expand there through a strategic partnership with a US company which has a licensed 503B compounding pharmacy.

This refers to outsourcing facilities which can manufacture large batches of medications, with or without prescriptions, to be sold to healthcare facilities for office use only.

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It added that it is mulling a dual listing on the Nasdaq, after it establishes an operating presence in the US. 

It also has plans to launch a telehealth platform, WaferiX, as well as launch an initial public offering of the platform in the US in the next 12 to 18 months. 

Assuming it raises the minimum gross proceeds of S$5 million, the new shares will represent about 5.6 per cent of the existing issued and paid-up share capital of the company, consisting of 888.8 million shares.

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The proposed placement is not underwritten by the placement agent; OCBC is not obliged to purchase any new shares not taken up by subscribers.

OCBC will receive a placement commission of 3.5 per cent of proceeds raised from the new shares it has sold or procured subscription for.

Shares of iX Biopharma jumped 35 per cent to S$0.127, with 57.4 million shares changing hands, before it called for a trading halt at 2 pm on Oct 27. 

In the year to date, the counter has surged 408 per cent – making it the second-best performer on the SGX.