AdAlta Ltd (ASX:1AD) has received commitments to raise A$3.75 million (before costs) via the issue of 51,369,863 new shares to institutional and sophisticated investors.
AdAlta is a clinical stage drug development company using its proprietary i-body technology platform to solve challenging drug targeting problems and generate a promising new class of single domain antibody protein therapeutics with the potential to treat some of today’s most challenging medical conditions.
The company recently completed Phase I clinical studies for its lead i-body candidate, AD-214, being developed for the treatment of Idiopathic Pulmonary Fibrosis (IPF) and other human fibrotic diseases for which current therapies are sub-optimal and there is a high unmet medical need.
The placement comes at an issue price of A$0.073 per new share, representing a discount of 10.4% to the volume weighted average price (VWAP) over the 15 days up to and including December 9, 2021, and a 9.9% discount to the last closing price.
Settlement of the placement is expected to occur on December 20, 2021.
“We are pleased to have received support from existing and new institutional and sophisticated investors in the placement,” AdAlta chair Dr Paul MacLeman said.
“This funding reinforces AdAlta’s existing cash reserves as we proceed towards key development milestones planned for AD-214 and our partnered programs during the first half of 2022.”
Use of funds
Money raised will be applied to:
- Developing inhaled and improved intravenous formulations of the AD-214 asset for Phase 2 clinical trials in Idiopathic Pulmonary Fibrosis (IPF) and Interstitial Lung Disease (ILD) patients including conducting additional product development, pre[1]clinical and toxicology studies;
- Discovering i-bodies against three new targets including 1-2 wholly owned programs addressing G-protein coupled receptor targets and 1-2 programs addressing CAR-T targets agreed under AdAlta’s collaboration with Carina Biotech;
- Advancing i-body platform capabilities to enable new external collaborations and continuing to address the most challenging drug targets in the biopharmaceutical industry; and
- General corporate costs and working capital, including activities to secure additional i-body platform collaborations and to potentially out-license AD-214.
Entitlement offer to raise $2.2 million
1AD will also initiate a non-renounceable entitlement offer at the same price as the placement of $0.073 per share for existing shareholders, which, if fully taken up, will raise an extra $2.2 million before costs with the issue of up to 30,705,617 new shares.
Existing eligible shareholders may acquire one new share for every eight shares held at the record date.
The entitlement is being backed by directors Paul MacLeman, David Fuller, Tim Oldham and Robert Peach, who have all indicated that they will seek to take up their entitlements under the offer in full.
Record date for the entitlement offer is December 20, with the offer to close on January 31, 2022, and shares to be issued on February 7, 2022.