Amplia Therapeutics Ltd (ASX:ATX) has closed the books on its fully underwritten, non-renounceable entitlement offer to develop anti-cancer drug AMP945.
Eligible shareholders could apply for up to one fully paid ordinary share for every four shares they held on November 16, 2021, and were also able to subscribe for new shares over and above their entitlement under a shortfall facility.
In addition to the new shares, entitlement offer participants will receive free attaching options based on one option for every three new shares issued.
The cash injection will fund the first stage of phase two clinical trials for AMP945, as well as manufacturing and further pre-clinical studies and additional working capital.
“Several value inflexions”
Amplia’s CEO and managing director Dr John Lambert said: “Amplia’s board and management are very grateful for the ongoing support of our shareholders and advisors.
“The entitlement offer, together with the placement we completed in November, puts our company in a strong position to reach several value inflexions over the next 12-18 months.
“Our team is now focused on the delivery of these milestones.”
Offer summary
Roughly 38.7 million new shares will be issued under the entitlement offer at 18 cents each, raising $6.97 million.
Amplia's offer was well supported by the company’s largest shareholders, with Platinum Investment Management Ltd, Blueflag Holdings Pty Ltd and Acorn Capital Limited (LSE:CAPD) all committing to taking up their full entitlements, amounting to $2.2 million in a “firm in relief” arrangement with the underwriter, Taylor Collison.
All up, 12.9 million options are expected to be issued in connection with the entitlement offer, bearing a 28-cent exercise price and due to expire on December 31, 2023.
In addition to the subscriptions noted above, Amplia received other valid applications from eligible shareholders for 6.4 million new shares, totalling $1.15 million.
Subsequently, the resultant shortfall of 19.9 million new shares will be placed by the underwriter.
Signing off, Amplia has advised the entitlement offer will settle on Tuesday, December 14.