Amplia Therapeutics Ltd, the Australian pharmaceutical company that specialises in developing Focal Adhesion Kinase (FAK) inhibitors for cancer and fibrosis, will raise A$12.4 million via a capital raising.
A placement of 30.1 million new, fully paid ordinary shares at A$0.18 per share to institutional and sophisticated investors will raise A$5.4 million while a 1 for 4, fully underwritten pro-rata non-renounceable entitlement offer is intended to raise A$7.0 million.
This capital-raising initiative will fund a Phase 2 clinical trial of its FAK inhibitor AMP945 in patients with pancreatic cancer.
FAK inhibitors are increasingly important in the field of cancer immunology and Amplia has a particular development focus in pancreatic and ovarian cancer. FAK also plays a significant role in a number of chronic diseases, such as idiopathic pulmonary fibrosis (IPF).
Funds for clinical trial costs
This Phase 2 trial will test AMP945 in combination with a standard of care in first-line pancreatic cancer patients.
The injection of funds will also be directed towards manufacturing, patent and licence fees, non-clinical studies and general working capital:
Two offers
The placement is directed at institutional and sophisticated investors to raise A$5.4 million with shares to be issued on November 12, 2021, while the one-for-four entitlement offer involves the issue of 38.7 million new shares to eligible shareholders in Australia and New Zealand.
New shares issued under the placement and entitlement offer are priced at A$0.18 each and will be offered with free attaching options on the basis of 1 option for every 3 new shares issued.
The offer price represents a discount of 7.7% to the closing price of Amplia shares of A$0.195 per share on Wednesday, November 3, 2021, and 11.8% to the volume weighted average price of Amplica shares for the five business days ending on November 3, 2021.
Options will have an exercise price of A$0.28 and expire on December 31, 2023.
The entitlement offer will include a shortfall facility, under which eligible shareholders who have taken up their full entitlement under the entitlement offer can apply to take up additional new shares in excess of their entitlements, that have not been taken up by other shareholders.
This offer will be fully underwritten by the lead manager of the capital raise, Taylor Collison Limited.
Institutional support
The company’s three largest institutional shareholders will either maintain or increase their percentage holdings as a result of the capital raising, demonstrating their ongoing support.
A prospectus containing information about the two offers will be lodged with ASX and ASIC on Monday, November 8, 2021.
- Susanna Nelson