- Race Oncology (RAC) raises $29.7 million in an oversubscribed share purchase plan
- The company received applications totalling almost $44 million from 2340 shareholders, with the funds to be used to accelerate the company’s clinical and development plans
- After scale-back, 9.9 million shares were issued at $3 each, representing 6.6 per cent of the company’s issued capital
- Shares are trading 3.94 per cent higher this morning at $3.43 a share
Race Oncology (RAC) has raised $29.7 million in an oversubscribed share purchase plan (SPP).
The company received applications from 2340 shareholders, totalling $43.9 million. In line with the terms of the SPP, only $29.7 million will be accepted.
The SPP funds will be utilised to expedite the company’s clinical and development ambitions. The Phase 1b/2 FTO solid tumour clinical study will get $8 million in funding. In Europe, $9.2 million will be allocated for Phase 2 of the EMD AML/MDS clinical investigation. Zantrene formulations that have been improved will get $3.2 million. One million dollars will be spent on preclinical cardioprotection research. A total of $800,000 will be spent on the creation of novel molecules.
After scale-back, 9.9 million shares were issued at $3 each, representing 6.6 per cent of the company’s issued capital.
To determine the amount applications were scaled back, the company says it took into account the size of the applicant’s shareholding, the extent to which eligible shareholders have sold or bought additional shares after the record date, and the date an application was made.
The company will refund any money of those scaled back without interest.
Eligible directors Phil Lynch, Mary Harney, and Daniel Tillett all applied for their full entitlements.
Managing Director Phil Lynch says he is humbled by the high level of support from shareholders.
“The number of applications reflects enthusiasm for the significant potential of our lead drug Zantrene, and this enables us to implement our planned clinical and drug development plans across the three-pillar program. We move into 2022 in an exceptional position, with many critical, reportable milestones ahead of us,” he said.
Shares were trading 3.94 per cent higher this morning at $3.43 a share at 11.04 am AEDT.