Novogen Ltd. (NVGN)

[PennyMoocher69]

Novogen Completes the Private Placement of Equity

http://finance.yahoo.com/news/novogen-completes-private-placement-equity-073200143.html

SYDNEY, April 29, 2015 /PRNewswire/ -- US-Australian drug discovery company, Novogen Limited (NRT: ASX; NVGN: NASDAQ) (Novogen or Company), announced today that it has completed the placement to US institutional investors of 51,750,000 ordinary shares, raising a total of $15,525,000 (before costs), as previously announced to the market on 21 April 2015.

Subject to Shareholder approval, the Company will issue 51,750,000 unlisted options exercisable at $0.30 within 6 months from the date of issue and 25,875,000 unlisted options exercisable at $0.40 within 5 years from the date of issue.

Dr Graham Kelly, Novogen group CEO and Executive Chairman, said, "This is the first of a three-step process that has been designed to deliver the financial security that the Company needs to commit to a substantial growth strategy. The second step will see the Company complete a pro-rata, non-renounceable Rights Issue offering in early June, which the Company believes will be fully subscribed, bringing its cash position mid-year to about $44M."

"The third step involves the tranche of options with a 6-month exercise term, that are intended to take advantage of current strong market sentiment for the biotech sector, along with an anticipated strong news flow over the remainder of this year following the ramping up of the Company's broad R&D programs."

"We now have certainty and the means to grow into the extraordinary opportunity that our two drug technology platforms have presented us with," Kelly said.

The funds will be applied to bringing a pipeline of 3 oncology drugs (Cantrixil, Trilexium, Anisina) through the clinic to the point intended to test their ability to provide a meaningful clinical benefit to patients with abdominal cancers (malignant ascites), adult and paediatric brain cancers, neuroblastoma, malignant melanoma and castrate-resistant prostate cancer. In the non-oncology space, the programs of ulcerative colitis, repair of brain and spinal injury, the treatment of muscular dystrophies, and the treatment of lysosomal storage diseases, will all now be moved into active phases with the intention of identifying at least 3 candidate drugs to be made clinic-ready within 2 years.