On December 14, 2021 Propanc Biopharma, Inc. (OTCQB: PPCB) ("Propanc" or the "Company"), a biopharmaceutical company developing novel cancer treatments for patients suffering from recurring and metastatic cancer, reported the entering into an equity purchase facility of up to $5 million with Dutchess Capital Growth Fund LP ("Dutchess"). Funds raised will be used to support operations as management advances the Company’s lead product, PRP, to a First-In-Human study in advanced cancer patients suffering from solid tumors (Press release, Propanc, DEC 14, 2021, View Source [SID1234597065]). Founded in 1996, Dutchess and its managed investment funds have provided principal-based financing and advisory services for publicly-traded and pre-IPO growth companies worldwide, partnering with over 250 micro- and small-cap companies.
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"The $5 million equity purchase facility will provide support for our operations and is an important contribution towards achieving our strategic goals by advancing PRP to a clinical study," said James Nathanielsz, Propanc’s Chief Executive Officer. "We are also progressing with our plans to establish a US based R&D operating subsidiary, Cellmed Bio LLC, where we intend to identify strategic partnerships that will fast track the growth of the Company. Discussions are actively taking place and our plans have been well received to date. We look forward to providing further updates on our progress in the future."
The Company will have the right in its sole discretion, to sell up to $5 million of ordinary shares (subject to certain limitations) to Dutchess, which has no right to require the Company to sell any shares, following the effectiveness of a registration statement with the Securities and Exchange Commission (the "SEC") registering ordinary shares issuable pursuant to the equity line purchase agreement and other customary closing conditions. The purchase price for the ordinary shares will be issued at a discount and derived from prevailing market prices of the Company’s ordinary shares.
The offer and sale of the shares of Propanc’s common stock issuable under the facility have not been registered under the Securities Act. Accordingly, these securities may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act. Propanc has agreed to file within 45 days a registration statement on Form S-1, covering the resale of the common stock issued and issuable in accordance with the terms of the facility. Further information has been provided regarding this recent financing in a Form 8-K filed with the SEC on December 7, 2021.