Novogen is tapping investors for $30.5 million as it prepares to enter a major growth phase fuelled by development of its cancer fighting drugs.
The biotech is carrying out a $15.5 million share placement with institutional investors and issuing another $15 million worth of shares to existing shareholders.
Chief executive Graham Kelly says Novogen will use the money raised to help pay for research programs into the development of the company's drug pipeline.
"The company is about to enter a significant growth phase," he said in a statement on Tuesday.
"I believe that the company has the intellectual property and the management expertise to achieve its goal of becoming a major player in the international biotechnology sector, and the fund-raising that we have announced today is key to that."
As part of its fundraising, Novogen is issuing 51 million fully-paid ordinary shares with attaching options to institutional investors in the United States.
Existing shareholders will also be able to take part in a one-for-six non-renounceable rights issue offer of fully-paid ordinary shares.
Novogen shares dropped 12.5 cents, or 30 per cent, to 29 cents.
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