AdAlta Ltd (ASX:1AD) is well on the way to an early return to the clinic with the novel therapeutic products from its i-body platform after raising $1.28 million in a non-renounceable rights issue.
Existing shareholders have taken up offer entitlements and additional acceptances while the company also has commitments in hand for the balance of the $3.15 million offer target.
The company will use the proceeds to fund a return to the clinic for its lead asset AD-214 as well as to progress partnering transactions.
To progress lead asset
AdAlta chair Dr Paul MacLeman said: “We are sincerely grateful to all those shareholders that participated in the offer.
"The funds raised will be used to take our lead fibrosis product, AD-214 back into the clinic via a Phase 1 extension study.
"The data from this study will be used to further inform Phase II study design and progress ongoing partnering discussions, strengthening AD-214’s commercial value.
"This funding also allows us to evaluate strategic collaboration and transaction opportunities, which can expand our product pipeline to produce transformational new therapies for fibrosis and cancer patients,” MacLeman said.
About the offer
The entitlement offer enabled eligible shareholders to acquire two new shares at 2.5 cents per new share for every five shares held at 7:00 pm (AEST) on Wednesday, May 3, 2023, together with one option for every two shares subscribed for.
Each option entitles the holder to subscribe for one additional ordinary share at an exercise price of 3 cents ($0.03) per share with an expiry date of May 29, 2024.
AdAlta received strong support from eligible shareholders, with valid applications for almost 41 million new shares as part of their pro rata entitlement under the offer, together with valid applications for 10,383,846 additional new shares.
The company will grant all applications for additional new shares in full, raising A$1.28 million with the new shares and new options expected to be issued on Monday, May 29, 2023.
Commitments in hand
Pre-commitments to the offer and shortfall of up to $2.49 million were received from director Dr Timothy Oldham, substantial shareholder Platinum Investment Management and the company’s corporate advisor for the offer, Peak Asset Management.
Platinum Asset Management has taken up its entitlement under the offer in full and consistent with the terms of its pre-commitment, will subscribe for up to $480,000 of the shortfall subject to its total shareholding not exceeding 19.9% of issued capital.
Peak Asset Management has committed to subscribe for up to $1.5 million of any excess shortfall, following subscriptions by all other shareholders.
The funds raised and commitments received mean that AdAlta is on track to achieve its target of $3.15 million before costs.
Trading in these shares and options is expected to begin on normal settlement terms on Tuesday, May 30, 2023, and the new shares will rank equally with existing shares on issue.