DelMar Pharmaceuticals (NSDQ:DMPI) announced pricing details of a $9 million public offering last week. The company priced 2.8 million shares and warrants to purchase an aggregate of 2.1 million shares of common stock at $3.25 apiece.
The offering’s warrants have an exercise price of $3.50 per share and have an term of exercise of 5 years, according to the Menlo Park, Calif.-based company. DelMar plans to use the proceeds of the offering for general corporate purposes.
The offering was expected to close today.
In September, DelMar and Accurexa inked a deal to collaborate on a combination chemotherapy for local treatment of brain cancer.
The agreement calls for DelMar to supply the drug dianhydrogalactitol (VAL-083) as part of a combination with another chemotherapeutic, either temozolomide or carmustine, for local delivery to the tumor via Accurexa’s ACX-31 implantable polymer wafer. DelMar said its drug proved successful in more than 40 clinical trials sponsored by the U.S. National Cancer Institute, winning orphan drug designation as a treatment for gliomas, medulloblastoma and ovarian cancer in April last year.
The deal gives DelMar the exclusive option to license, acquire and commercialize product candidates and intellectual property resulting from the research involving VAL-083 and ACX-31. The companies will share the research costs.