Pacific Channel Ltd has supported Living Cell Technologies, a New Zealand global leader in cell therapy, in raising A$4.2 million through the issue of new shares.
Pacific Channel managed the New Zealand side of the trans-Tasman capital raising for LCT which is listed on the Australian Stock Exchange (ASX).
The successful capital raising involved the placement of 5.5 million ordinary LCT shares at 16.5 Australian cents per share with two options attached to every five shares.
Pacific Channel Director, Brent Ogilvie, said “it is pleasing that New Zealand investors supported LCT which will use the A$4.2 million to conduct clinical trials of a new treatment for Type 1 diabetes, DIABECELL®, in both New Zealand and Russia.”
The most recent patient taking part in trials, who had Type 1 diabetes for 15 years, became the second person to no longer require insulin injections after treatment.
Mr Ogilvie said “this is the third capital raising in 2009 in which Pacific Channel has worked with Professor Bob Elliott, the prominent New Zealander who co-founded LCT in 1987.
“In May, Pacific Channel raised a second round of capital for Sleep Limited, now Somnaceutics Limited, and in July raised first round capital for Breathe Easy Limited, a company developing a treatment for cystic fibrosis. Somnaceutics is commercialising a milk product to help people sleep,” he said.
LCT’s DIABECELL® treatment for diabetes involves implanting insulin-producing cells into patients to regulate glucose levels. The cells, taken from healthy Auckland Island pigs, are encapsulated with alginate to ensure acceptance by the body’s immune system.