Race Oncology Ltd (ASX:RAC) has closed its heavily oversubscribed share purchase plan (SPP), having raised A$29.7 million from 2,340 shareholders at the A$3.00 issue price.
This SPP comprised the issue of 9.9 million new ordinary fully paid shares, representing approximately 6.6% of RAC’s issued capital as at December 21, 2021.
The SPP totalled A$43.9 million, however, as per the terms only A$29.7 million will be accepted, with funds to accelerate the FTO solid tumour Phase 1b/2 clinical trial; Cardio-protection preclinical and clinical Phase 2b trial; European EMD AML Phase 2 trial; Improved Zantrene formulations and new molecule development.
The breakdown of funds is:
- Phase 1b/2 FTO solid tumour clinical trial – A$8.0 million;
- Cardio-protection Phase 2b clinical trial in breast cancer patients – A$7.5 million;
- Phase 2 EMD AML/MDS clinical trial in Europe – A$9.2 million;
- Improved formulations of Zantrene® – A$3.2 million;
- Preclinical cardio-protection studies – A$1.0 million; and
- Development of new molecules – A$800,000.
Implementing clinical and drug development plans
“The Race team has been humbled by the extraordinary show of shareholder support for our share purchase plan and we sincerely thank all those who participated,” Race's managing director and CEO Phil Lynch said.
“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.”
Race’s chief scientific officer and executive director Dr Daniel Tillett said, “I would like to personally thank all our shareholders for their generous support of our plans for Zantrene.
"It is extremely humbling to have so many of our shareholders willing to join and support us on the exciting journey to bring Zantrene back to patients in need.”
Eligible directors Phillip Lynch, Mary Harney and Dr Daniel Tillett all applied for their full entitlements in the SPP.
About RAC
RAC is a precision oncology company with a Phase 2/3 cancer drug called Zantrene®, a potent inhibitor of the Fatso/Fat mass and obesity associated (FTO) protein.
Overexpression of FTO has been shown to be the genetic driver of a diverse range of cancers.
RAC is exploring the use of Zantrene as a new therapy for melanoma and clear cell renal cell carcinoma, which are both frequent FTO over-expressing cancers.
In breakthrough preclinical research, RAC has also discovered that Zantrene protects from anthracycline-induced heart damage, while in tandem acting with anthracyclines and proteasome inhibitors to improve their ability to target breast cancer. Race is evaluating this discovery.
The company also has compelling clinical data for Zantrene as a chemotherapeutic agent and is in clinical trial in Acute Myeloid Leukaemia (AML).
Race is pursuing outsized commercial returns for shareholders via its ‘Three Pillar’ strategy for the clinical development of Zantrene.