pSivida raises A$6.3 million via rights issue

By Jennifer Chiou

New York, June 14 - pSivida Ltd. said it raised A$6,309,487 through a rights issue.

The company issued 10,515,811 new shares at A$0.60 per share, making up 22% of the 48.25 million shares that were available under the rights issue.

On May 2, the company announced intentions to raise up to A$29 million from the rights issue.

The rights will be exercisable at A$0.60 per share, an 18% discount to the 30 day volume weighted average closing price on the Australian Stock Exchange up to May 1 and a 7% discount to the five-day average.

As previously announced, shareholders received non-renounceable rights to buy one new ordinary share for every eight shares held at May 22.

The shares are expected to trade on the Australian Stock Exchange starting June 19.

The rights issue had a top-up feature allowing eligible shareholders to apply for additional new ordinary shares in excess of their entitlement at the same price.

The offering was not registered in the United States.

pSivida said it chose not to place the shortfall with institutional and sophisticated clients of U.S. lead manager Janney Montgomery Scott LLC due to market conditions.

Perth, Australia-based pSivida will use proceeds to fund phase 3 clinical trials of Medidur for the treatment of Diabetic Macular Edema and phase 2a clinical trials of its lead BioSilicon product, BrachySil, which is being developed for the treatment of inoperable pancreatic cancer.

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