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- Cancer treatment company Kazia Therapeutics (KZA) has successfully completed the institutional part of its recently-announced entitlement offer
- The company pulled in $16.4 million from institutions by offering one new share for every three already held at 80 cents a pop
- The new cash will fund Kazia’s participation in the GBM AGILE study in glioblastoma
- The company said this is a pivotal trial for registering its paxalisib drug to treat glioblastoma
- The retail segment of the entitlement offer will open on Thursday, October 8
- Shares in Kazia are trading 15.1 per cent lower today after breaking out of their trading halt, currently worth 82 cents each.
Cancer treatment company Kazia Therapeutics (KZA) has successfully completed the institutional part of its recently-announced entitlement offer.
The company pulled in $16.4 million from institutions by offering one new share for every three already held at 80 cents a pop. Kazia said the non-renounceable offer received strong interest from institutions, with all eligible holders taking part in the raise.
The 80-cent offer price represents a 16.7 per cent discount to Kazia’s last closing price of 96 cents.
For mum and dad investors wanting to top up at the discount, the retail component of the capital raise will open on Thursday, October 8. Retail investors can subscribe for new shares on the same terms as the institutional raise — one-for-three at 80 cents each.
When Kazia announced the raise, it said it was planning to issue just over 31.5 million new shares under the offer, taking the total proceeds from the raise to $25.2 million. This means if all goes according to plan, Kazia should pull in just under $9 million from the retail segment of the offer.
Why the raise?
The new cash from the raise will go towards funding Kazia’s participation in the GBM AGILE study in glioblastoma, which is an aggressive cancer that occurs in the brain or spinal cord.
The study is pivotal for registering Kazia’s paxalisib treatment for this type of cancer.
Kazia Chairman Iain Ross said the company is “delighted” to have received such strong interest from institutions.
“Kazia has made enormous progress as a company, and this financing round promises to be transformative, as we move into late-stage clinical trials,” Iain said.
“We are thankful for the emphatic support of our shareholders and look forward to reporting new data in coming months,” he said.
When the raise was announced, Iain said the GBM AGILE trial will effectively shape the future of the company.
Kazia shares broke out of a trading halt this morning and have since retreated towards the entitlement offer price.
At midday AEST, shares in the company are trading 15.1 per cent lower at 82 cents each.
