Biotech company Invion Ltd (ASX:IVX) is raising $2 million in a two-tranche share placement to support a series of clinical trials and development activities for its Photosoft technology, seeking to treat a range of cancers.

The company said it had completed the placement, with shares priced at 14 cents each – a 2.5% premium to the 30-day volume-weighted average price. This was chiefly managed by Blue Ocean Equities and has already attracted strong demand – reflected in the fact the initial goal was $1.5 million.

The funds will go towards recruiting from a second site for the company’s Phase I/II skin cancer trial, and commencement of a Phase I/II anogenital trial in collaboration with the Peter MacCallum Cancer Centre in Melbourne.

Crucially, a successful outcome in the latter could enable orphan drug designation in the U.S. to fast-track trials in the rare disease indications.

Executive chair and CEO Thian Chew said the enthusiastic support during this placement reflected Invion’s growing profile.

“We are delighted to welcome new shareholders to Invion via the Placement, many of whom are sophisticated investors in the biotech space that are supporting thecompany after reviewing our achievements and the multiple milestones in our horizon,” he said.

“In addition to the skin and anogenital cancer trials, these milestones also includeupdates on the glioblastoma, oesophageal cancer and human papilloma virus studiesthat are fully funded by our partners.”

Invion shares have been trading at 14 cents.

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