LTR Pharma Limited

LTR Pharma Limited (ASX:LTP)

Offer Price

A$0.730

per share

Offer Size

A$8,000,000

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Placement

LTR Pharma Limited (ASX:LTP)

LTP1

Lead Manager

Offer Price

A$0.730

per share

Offer Size

A$8,000,000

Placement

LTR Pharma Limited

Key Offer Details

Issue Price (Per Share)

A$0.730

Discount

-2.82%

Offer Size

A$8,000,000

Shares Available

10,958,904

Capital Raising to raise A$8.0m (the Offer) (before costs), comprising:

  • Placement to raise A$8.0m by the issue of 10,958,904 new shares (New Shares) under the Company’s LR 7.1 placement capacity;
  • The Company reserves the right to accept $2.0m oversubscriptions under the Offer;

Transaction Type

  • Placement - Single Tranche

Industry Group

  • Pharmaceutical

Sole Lead Manager

  • Alpine Capital

Offer Pricing

  • $0.7300 per New Share represents a:

  • 18.9% discount to the last traded price of $0.9000;

  • 16.0%% discount to the 5 Day VWAP of $0.8693;

  • 14.4% discount to the 15 Day VWAP of $0.8531; and

  • 13.2% discount to the 30 Day VWAP of $0.8411.

Use of Funds

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Compelling Pivotal Pharmacokinetic Study Data

SPONTAN achieved positive primary and secondary clinical study results from its pivotal pharmacokinetic trial, showing rapid absorption and faster time to maximum concentration compared to oral PDE5 inhibitors, at half the dose.

Results from the pharmacokinetic clinical study showed SPONTAN reached a similar max concentration level (Cmax) as oral administration but with half the dose. The time it took to reach peak concentration (Tmax) for SPONTAN was in 12 minutes on average compared to 56 minutes in patients receiving oral treatment.

Expedited Regulatory & Pathway

LTR is seeking an expedited regulatory pathway under the TGA’s Category 1 Type F application and the FDA’s 505(b)(2) NDA pathway, leveraging existing safety and efficacy data from the existing drug Vardenafil.

Approval under the expedited pathways will streamline the development program and commercialisation process, targeting FDA NDA filing in early CY25 and TGA filing at middle of CY25.

Following commercialisation in the US and Australia, LTR aims to expand globally via sub-licensing agreements with third parties and will seek to leverage its IP and invest in product R&D to expand its nasal spray product portfolio for ED and non-ED applications.

Commercialisation Pathway

Australia SAS Sales: Successful clinical study results outlining the strong safety profile will enable near-term commercialisation in Australia through early access schemes, SAS and APS, with expected first sales in the coming quarter.

Partnering / Licensing LTR Pharma have commenced exploring partnership/licensing opportunities with significant offshore pharmaceutical industry participants.

Direct Sales Post Regulatory Approval Under expedited paths to market, LTR Pharma are seeking regulatory approval for SPONTAN with market entry focusing on leveraging online sales channels, with a majority of scripts being fulfilled online.

Unique Patient Proposition

SPONTAN is designed as a first-in-kind, fast acting and on demand Nasal Spray treatment for erectile dysfunction (ED). Due to its delivery technology, its designed with a lower dose drug formulation, reducing the risk of adverse systemic exposure and undesirable side effects that oral PDE5 tablets (Viagra, etc) experience.

The Intra-nasal delivery platform offers a more convenient and less invasive administration method, particularly beneficial for males that don’t want to plan ahead for their sexual activity and want a product that can work within 10 minutes of administration.

SPONTAN bypasses the liver and 1st pass metabolism for enhanced streamlined effectiveness and leverages a large, highly vascular surface for maximised bioavailability.

Blockbuster Market with Issues

ED is a widespread and serious medical issue with significant effects on men’s physical and psychological well-being, estimated to affect 60.7% of men in Australia aged 45 and older.

It is estimated that around 46% of people using ED drugs stop or discontinue their use due to poor efficacy inconvenience of the delayed onset of action or no effect at all during the desired timeframe.

Capital Structure

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TimeTable

Note times are in AEST.

Trading Halt

Monday, 22 July 2024

Bids Due

4pm Monday, 22 July 2024

Commitment Letter Returned

12pm Tuesday, 23 July 2024

Company Recommences Trading

10am Wednesday, 24 July 2024

DvP Settlement

Tuesday, 30 July 2024

Allotment of Shares

Wednesday, 31 July 2024

Board & Management

Lee Rodne

Lee Rodne

Executive Chairman

Lee holds over 25 years’ experience in healthcare and technology sectors in both public ASX and private enterprises, holding multiple executive leadership roles, with a proven record of commercialising medical devices in Australia, North America, Europe and Asia .

Prior to joining LTR Pharma, Lee worked at Fortescue Metals group and was CEO and managing director for healthcare technology spin out Allied Medical, leading it to a valuation peak of $250m from $800k.

Dr Julian Chick

Dr Julian Chick

Non-Executive Director

Julian is an experienced healthcare executive with over 20 years’ experience in board and senior management positions, including ASX listed companies Avexa (ASX.AVX), Admedus (ASX.AHZ), and is current Deputy Chairman of Cann Group Limited (ASX:CAN).

Julian’s has worked across investment banking transactions for over 8 years, focused on healthcare and biotechnology investment opportunities for private equity investors and venture capitalists.

Maja McGuire

Maja McGuire

Non-Executive Director

Maja is a consulting lawyer and board director with 15 years experience providing strategic, corporate and compliance advice to public listed companies. This includes working with listed companies as a non- executive chair, non-executive director, general counsel, company secretary and in private practice.

Maja currently holds roles in multiple ASX listed companies, including non-executive chair of TechGen Metals (ASX.TG1), NED of Kuniko (ASX.KNI) and NED of Indiana Resources Liimited (ASX.IDA).

Disclaimer

Disclaimer: This document is intended solely for the information of the particular person to whom it was provided by the Lead Manager (LM) and their affiliates and should not be relied upon by any other person. The information contained herein is believed to be accurate and reliable, but has not been independently verified. The document contains summary information about LTP and is of a general nature. It does not purport to be complete nor contain all the information a prospective investor may require.

Neither LTP nor the LM assume any responsibility for updating any advice, views, opinions, or recommendations contained in this document or for correcting any errors or omissions that may become apparent. LTP and the LM do not warrant the accuracy, reliability, or completeness of any information in this document. Except insofar as liability under any statute cannot be excluded, LTP and the LM, and their respective directors, employees, and consultants (including those of the LM affiliates), do not accept any liability for any error or omission in this document or for any resulting loss or damage suffered by the recipient or any other person.

This document is provided for informational purposes only and may not be reproduced or redistributed. It does not constitute an offer, invitation, solicitation, advice, or recommendation with respect to the subscription for, purchase, or sale of any security. Investors should refer to ASX releases made by LTP before making any investment decisions.

Forward-Looking Statements: This document contains forward-looking statements that involve subjective judgment and analysis and are subject to significant uncertainties and risks. These statements are identified by forward-looking words such as “may”, “will”, “expect”, “intend”, “seek”, “estimate”, “believe”, “continue”, or similar words. No representation, warranty, or assurance is given that any forward-looking statements will be achieved. Actual future events may vary materially from the forward-looking statements and assumptions on which they are based. Readers should not rely on such statements as a guarantee of future performance.

Subject to any continuing obligations under the Corporations Act and the ASX Listing Rules, LTP and the LM disclaim any obligation to update or revise any forward-looking statements.

Disclosure of Interest: The LM, their employees, consultants, associates, and affiliates may receive brokerage, commissions, underwriting, and management fees up to 6.0% of the gross proceeds from transactions involving securities referred to in this document. They may also hold interests in these securities and receive advantages in connection with recommendations or dealings by clients in these securities.

Acknowledgements: Distribution of this document outside Australia may be restricted by law. This document may not be taken into or distributed in the United States, Canada, or Japan, or to any US person. By bidding into the Bookbuild, you represent, warrant, acknowledge, and agree for the benefit of the Offeror, the Lead Manager, and their related bodies corporate, that: • You are a person to whom securities may lawfully be offered and issued in compliance with applicable laws. • Your Bid into the Bookbuild is a binding and irrevocable agreement to acquire the nominated number of securities (subject to final allocations). Eligible Purchasers: By receiving this document, the recipient represents, acknowledges, and agrees that they must be “(i) “sophisticated investors” pursuant to section 708(8) of the Corporations Act 2001 (Cth), (ii) “professional investors” pursuant to section 708(11) of the Corporations Act 2001 (Cth), or (iii) “experienced investors” pursuant to section 708(10) of the Corporations Act 2001 (Cth). If you are not an Eligible Purchaser, you must immediately return this document to the Issuer. Important Links: For detailed terms, refer to the Master ECM Terms available on the Australian Financial Markets Association website: https://afma.com.au/standards/standard-documentation

LTR Pharma Limited

Placement

LTR Pharma Limited (ASX:LTP)

LTP1

Offer Price

A$0.730

per share

Offer Size

A$8,000,000

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