Consegna Group (ASX: CGP) has received a major vote of confidence in the company's operations from the market, after completing a private placement of shares and unlisted options to sophisticated investors.
The placement comprises 37.5 million shares at $0.04 to raise A$1.5 million, along with 12.5 million options with an exercise price of $0.035 before January 2013.
Consegna has already outlined that the funds will be used to develop the company’s Linguet buccal drug delivery technology, along with funding foreign licensing and overseas investment opportunities.
Linguet is a tablet or lozenge formulation technology that releases an active drug ingredient in the mouth and which facilitates absorption through the oral mucosa.
Highlighting the potential of the drug, the oral modified release delivery market was valued at $49 billion in 2009 and is estimated to double by 2016.
Consegna to start BreatheAssist commercialisation process
Consegna continues to progress commercialisation of its BreatheAssist device, and in November last year started negotiating licences. BreatheAssist is a multi-functional nasal dilation technology that enhanced nasal airflow by 37% in a clinical study.
Importantly, there are multiple licensing opportunities for BreatheAssist, including sport, medication delivery, snoring cessation, aiding sleep apnoea and the filtration of pollen and other airborne pollutants.
Consegna reaffirmed its plan recently for 2012 is to seek international licensing deals specifically for the BreatheAssist technology. The company is aiming to complete its first transaction by the June quarter of this year.
Further improved production samples of one of the variants of BreatheAssist will be available in February this year, which is expected to assist in maximising licensing negotiations.
Besides its BreathAssist technology, Consegna has also developed the Vibrovein technologies, which is a vibrating device that attaches to any syringe to substantially reduce penetration resistance. Consegna is targeting the $120 billion injectable drug market.
Shareholder Balam Global continues to increase stake
Substantial shareholder Balam Global continues to increase its exposure to Consegna, and earlier in the month purchased more shares on market to increase its stake to 15.47%.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/24581/consegna-group-in-a15m-placement-to-sophisticated-investors-to-advance-drug-delivery-technology-24581.html
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