Island Pharmaceuticals Ltd (ASX: ILA) announces fully underwritten rights issue

Island Pharmaceuticals Ltd is a drug repurposing company, focused on areas of unmet need for antiviral therapeutics to address infectious diseases. Its lead asset, ISLA-101, is for the treatment of dengue fever.

By Dr Paul MacLeman:

MELBOURNE, Australia – February 27, 2024 – Island Pharmaceuticals Ltd (ASX: ILA, Island or the Company), an Australian antiviral drug development company, is excited to unveil its fully underwritten non-renounceable pro rata offer aimed at eligible shareholders to raise approximately $1.95 million (before costs).

Island Pharmaceuticals has achieved significant milestones in recent months, particularly in the advancement of its lead asset, ISLA-101, for the treatment of dengue fever. With dengue fever affecting approximately 400 million people annually and prevalent in about 100 countries, the demand for effective treatments is substantial.

In February 2024, the final subject in Island’s ISLA-101 Single Ascending Dose study was dosed, demonstrating safety and tolerability and meeting primary endpoints. This achievement paves the way for the PEACH1 efficacy study for ISLA-101, a critical phase for the Company.

Dr. David Foster, CEO and Managing Director, expressed gratitude for the support from both existing and new investors, extending the offer to all eligible shareholders. Funds raised will primarily support the analysis of Phase 1 data and preparations for the Phase 2 clinical trial (PEACH study).

Terms of the Offer include a non-renounceable rights issue of two New Shares for every five existing shares held by eligible shareholders as of the Record Date (Thursday, February 29, 2024). Additionally, shareholders will receive one New Option for each New Share issued, with the option to obtain further options by exercising within three months of the offer’s closing date.

The Offer, opening on March 5, 2024, and closing on March 14, 2024, will be conducted in accordance with Section 713 of the Corporations Act. Shareholders subscribing to their full entitlement may also apply for additional shares at the same price, subject to discretion by the Company.

PAC Partners Securities Pty Limited serves as Lead Manager, with full underwriting provided by PAC Partners Securities Pty Limited pursuant to an underwriting agreement. Each Director on the Board of Island Pharmaceuticals has committed to participating in the Offer.

The New Shares will be fully paid ordinary shares, ranking equally with existing issued shares. Application for official quotation of the New Shares will be made to the ASX, along with the New Options and Piggy Back Options, if required.

Use of funds will primarily support the analysis of Phase 1 data and preparations for the Phase 2 clinical trial (PEACH study) for ISLA-101.

For further information, please contact:

Dr Paul MacLeman Executive Chairman Island Pharmaceuticals Ltd
[email protected]

Investors and media, for further information, please contact:
Jane Lowe
IR Department Mobile: +61 411 117 774
[email protected]

About Island Pharmaceuticals

Island Pharmaceuticals Ltd (ASX: ILA) is a drug repurposing company, focused on areas of unmet need for antiviral therapeutics to address infectious diseases. Our lead asset is ISLA-101, a drug with a well-established safety profile, being repurposed for the prevention and treatment of dengue2 fever and other mosquito (or vector) borne diseases.

If ISLA-101 achieves FDA approval, and certain other criteria are met, Island may be eligible to obtain a “Priority Review Voucher” at the time of FDA approval. This means that as well as getting approval to manufacture and sell ISLA-101, the Priority Review Voucher (PRV) could permit Island to expedite the FDA approval process for a new drug or sell the PRV in a secondary market.

Articles of Interest