Prana Announces Successful A$7 Million Capital Raising

Prana Announces Successful A$7 Million Capital Raising 
MELBOURNE, AUSTRALIA -- (Marketwire) -- 03/27/13 --   Prana
Biotechnology (NASDAQ: PRAN) (ASX: PBT), today announced that it has
secured funding of A$7 million through a placement of approximately
35.9 million fully paid ordinary shares at a price of A$0.195 per
share (equivalent to approximately US$2.03 per Nasdaq listed ADR). 
The funding amount includes A$2 million as part of an underwritten
Share Purchase Plan (SPP).  
The placement attracted strong demand from a range of Australian
Institutions and High Net Worth Investors. The placement was managed
by JM Financial Group Limited, based in Melbourne, Australia.  
Capital is being raised by Prana in order to accelerate the
regulatory pathway of its key clinical asset PBT2, now in two
concurrent Phase II clinical trials in Huntington Disease and
Alzheimer's Disease. Recruitment was completed for both clinical
trials on time and within budget. Results are expected to be reported
in October 2013 for Huntington's Disease and 1Q 2014 for Alzheimer's
Disease.  
Chairman and CEO Geoffrey Kempler said, "These funds allow us to
accelerate our drug development schedule and move towards
commercialization of PBT2 a year sooner than would otherwise be
possible. We are grateful for the support of both our existing and
new investors." 
Share Purchase Agreement (SPP) 
Prana will offer eligible shareholders the right to participate in
the SPP which will enable shareholders to apply for up to A$15,000 of
shares (subject to any scale back) at the same price as the
Placement. The first A$2 million under the SPP will be underwritten
by JM Financial Group Ltd.  
The maximum amount to be raised under the SPP is A$4 million. The SPP
will be available to all eligible shareholders who were on the
Company's share register at 7.00 pm AEDT on Tuesday 26th March 2013
(record date). 
The SPP will allow each eligible shareholder to apply for up to
approximately 76,900 new fully paid ordinary shares at an issue price
of A$0.195 per share (a total of A$15,000). The full terms of the SPP
offer, and how to accept and apply for new shares will be set out in
an SPP Offer document which will be sent to all eligible
shareholders.  
The subscription price of the shares to be offered
 under the Plan
represents a 13.3% discount to the market closing price on the ASX as
at the Record Date. 
The funds raised under the Offer will be used to accelerate the
regulatory pathway of the Company's key clinical asset, PBT2, as
referred to above. 
The proposed timetable for the SPP is as follows: 


 
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Indicative Timetable                                                        
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Record Date                                                    26 March 2013
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Announcement of Share Purchase Plan                            27 March 2013
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Dispatch of Offer and Application Forms to Eligible            11 April 2013
Shareholders                                                                
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Share Purchase Plan Opens                                      11 April 2013
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Share Purchase Plan Offer Closes                               26 April 2013
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Allotment and Issue of SPP Shares                                 3 May 2013
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Dispatch of Holding Statements                                    8 May 2013
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Quotation of SPP Shares on ASX                                    9 May 2013
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Subject to the ASX Listing Rules and Corporations Act, the Company
reserves the right to vary the above dates in consultation with the
Underwriter. If the Offer is oversubscribed, the Company in
consultation with the Underwriter reserves the right to close the
Offer early. 
The above timetable is subject to change -- shareholders should
consult the SPP offer document which will be mailed to them. 
The Company will apply for quotation of the new shares issued under
the SPP. The new shares will rank equally in all respects with the
Company's existing fully paid ordinary shares. 
About Prana Biotechnology Limited
 Prana Biotechnology was
established to commercialize research into age-related
neurodegenerative disorders. The Company was incorporated in 1997 and
listed on the Australian Securities Exchange in March 2000 and listed
on NASDAQ in September 2002. Researchers at prominent international
institutions including The University of Melbourne, The Mental Health
Research Institute (Melbourne) and Massachusetts General Hospital, a
teaching hospital of Harvard Medical School, contributed to the
discovery of Prana's technology.  
For further information please visit the Company's web site at
www.pranabio.com. 
Forward Looking Statements 
 This press release contains
"forward-looking statements" within the meaning of section 27A of the
Securities Act of 1933 and section 21E of the Securities Exchange Act
of 1934. The Company has tried to identify such forward-looking
statements by use of such words as "expects," "intends," "hopes,"
"anticipates," "believes," "could," "may," "evidences" and
"estimates," and other similar expressions, but these words are not
the exclusive means of identifying such statements. Such statements
include, but are not limited to any statements relating to the
Company's drug development program, including, but not limited to the
initiation, progress and outcomes of clinical trials of the Company's
drug development program, including, but not limited to, PBT2, and
any other statements that are not historical facts. Such statements
involve risks and uncertainties, including, but not limited to, those
risks and uncertainties relating to the difficulties or delays in
financing, development, testing, regulatory approval, production and
marketing of the Company's drug components, including, but not
limited to, PBT2, the ability of the Company to procure additional
future sources of financing, unexpected adverse side effects or
inadequate therapeutic efficacy of the Company's drug compounds,
including, but not limited to, PBT2, that could slow or prevent
products coming to market, the uncertainty of patent protection for
the Company's intellectual property or trade secrets, including, but
not limited to, the intellectual property relating to PBT2, and other
risks detailed from time to time in the filings the Company makes
with Securities and Exchange Commission including its annual reports
on Form 20-F and its reports on Form 6-K. Such statements are based
on management's current expectations, but actual results may differ
materially due to various factors including those risks and
uncertainties mentioned or referred to in this press release.
Accordingly, you should not rely on those forward-looking statements
as a prediction of actual future results. 
Contacts:
Australia
Prana Biotechnology
+61 3 9349 4906 
US
Leslie Wolf-Creutzfe
ldt
T: 646-284-9472
E: leslie.wolf-creutzfeldt@grayling.com 
 
 
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