- Biotech company Kazia Therapeutics (KZA) has closed its $1.8 million share purchase plan
- Approximately 4.5 million shares were issued to eligible shareholders at a price of 40 cents per share
- They are expected to be allocated on May 11 and begin trading on the ASX on May 12
- The money raised will be used to progress Kazia's paxalisib clinical trial, complete analysis of its Cantrixil phase one study, and as working capital
- Kazia is up a slight 1.3 per cent on the market and shares are currently trading for 39 cents each
Biotech company Kazia Therapeutics (KZA) has closed its $1.8 million share purchase plan.
The share purchase plan offered eligible shareholders the opportunity to purchase up to $30,000 worth of new shares.
Approximately 4.5 million shares were issued at a price of 40 cents per share. They are expected to be allocated on May 11 and begin trading on the market on May 12.
The money from both the share purchase plan, and a recently completed placement, will be used to progress Kazia's paxalisib clinical trial, complete analysis of its Cantrixil phase one study, fund other trials, and as working capital.
"As on previous occasions, the proceeds will be applied directly to progressing and enriching the company's R&D programs," Chairman Iain Ross said.
"We expect paxalisib to transition to a pivotal study in the second half of this year, so it is a particularly critical time for the company," he added.
What is paxalisib?
Paxalisib, formerly known as GDC-0084, is a new targeted therapy that regulates the PI3K pathway.
This pathway is an intracellular signally pathway that promotes metabolism, proliferation (cell addition), cell survival, and cell growth.
Kazia is using it to treat glioblastoma (cancer that affects the brain and spine) and it just recently announced positive interim data from its trial.
Interim data has indicated an increase of almost 40 per cent in the overall survival figure from 12.7 months to 17.7 months.
This trial is continuing and final results will be announced once it has been completed.
Cantrixil is a first-in-class development candidate that targets the entirety of cancer cells and tumour-initiating cells that are thought to cause cancer recurrence.
It is currently being developed for the treatment of ovarian cancer and it is being trialled in hospitals across both Australia and the States.
Kazia is up a slight 1.3 per cent on the market and shares are trading for 39 cents each at 2:09 pm AEST.