Here's why the Emyria (ASX:EMD) share price is up 17% to a record high

What did Emyria announce?

The Emyria Ltd (ASX: EMD) share price jumped to an all-time high today. This comes after the drug development and care delivery company announced a successful share placement by one of Australia's largest private investment groups.

During afternoon trade, Emyria shares accelerated to a record high of 39 cents apiece before retreating slightly to 38 cents, up 16.92% at the time of writing.

Three scientists wearing white coats and blue gloves dance together in a lab.

Image source: Getty Images

Emyria secures strategic investment

Investors appear excited about the company bringing its newest investor on board, sending the Emyria share price to uncharted territory.

According to its release, Emyria advised it has received a $5 million strategic investment from Tattarang through a share placement.

Owned by the Forrest family, namely Andrew 'Twiggy' Forrest, Tattarang holds an extensive investment portfolio. This includes sectors across agri-food, energy, resources, property, lifestyle and healthtech.

Tattarang and its related entities hold a 36% stake in Fortescue Metals Group Limited (ASX: FMG).

Under the placement, Emyria will issue 20 million shares to Tattarang at a price of 25 cents each. Once completed, this will give Tattarang a 7.3% interest in Emyria.

In addition to the placement, 10 million options will be issued at an exercise price of 40 cents per option. The expiry date is two years from the expected date of 24 November 2021.

The funds received will be allocated to Emyria's synthetic cannabinoid registration programs with the Therapeutic Goods Administration (TGA), and the United States Food and Drug Administration (FDA).

Furthermore, the company is also seeking to advance its novel MDMA-analogue development program with the University of Western Australia.

Emyria managing director, Dr Michael Winlo commented:

We are delighted to receive Tattarang's strong support with this placement.

Emyria is the only ASX-listed company that controls patient-treating clinics and a clinical-trial-grade data system and uses these assets to accelerate the development and registration of new drugs, digital technologies and care models.

Our current leading programs cover synthetic cannabinoid-based pharmaceuticals, MDMA-assisted therapy and novel psychedelic drug development. We are very pleased to welcome Tattarang to be part of this next phase of growth.

Emyria share price summary

Over the past 12 months, Emyria shares have registered gains of more than 400%, with year-to-date hovering above 300% in 2021.

Emyria presides a market capitalisation of roughly $58.52 million and has approximately 153.99 million shares on its registry.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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