Starpharma Raises A$15.6 Million From Private Placement

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November 19, 2009 (FinancialWire) -- Starpharma Holdings Ltd. (OTC: SPHRY) said it has raised A$15.6 million through a private placement to institutional and sophisticated investors, taking the company's cash reserves to around A$24 million.

The lead investor in the placement was Orbis, an existing Starpharma shareholder and an institutional fund manager. As a result of this additional investment Orbis will become a "substantial shareholder" in Starpharma, according to the company. The company's largest shareholder, Acorn Capital, also participated in the raising, along with several other existing and new institutional investors.

Starpharma said the placement is for 30 million shares at $0.52 per share, a 9.7% discount to the volume weighted average price of the company's shares over the prior 20 trading days.

The funds raised will primarily be used to finance a clinical trial program to develop VivaGel for the treatment of bacterial vaginosis and to further strengthen the balance sheet for future development and partnering opportunities.

Australia-based Starpharma Holdings is engaged in the development of dendrimer technology for pharmaceutical, life-science and other applications.

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