Arovella Therapeutics Ltd (ASX:ALA) says it has been swamped by shareholder demand following the release of its share purchase plan (SPP), and has already received subscriptions in excess of the $2.5 million available under the SPP offer.
As a result, it has decided to increase the capacity of the SPP to $2 million and it will close the SPP with immediate effect.
Valid subscriptions already received will be subject to a scale-back, and any applications received after today will not be accepted under the SPP.
AVR will scale back applications equally on a pro rata basis in accordance with the terms of the SPP offer.
Excess application monies will be returned to successful applicants, and any applications received from today will be returned in full to applicants.
Proceeds to fund CAR19-iNKT cell therapy
The funds raised under the SPP and from the recently completed $4.5 million placement, announced on January 24, 2022, will be used to fund manufacturing of components for the CAR19-iNKT cell therapy, to perform preclinical studies for DKK1-CAR-iNKT, and for general working capital purposes.
Arovella managing director Michael Baker said he was delighted with the overwhelming response to the SPP from shareholders, with the additional funds raised further strengthening the company’s balance sheet as it advanced its activities.
“We undertook the SPP to give existing shareholders the opportunity to purchase shares on the same terms as our successful $4.5 million placement completed in January to sophisticated and professional investors," he said.
“We have been inundated by shareholder applications and, in light of the applications exceeding $2.5 million, we have made the decision to increase the SPP capacity and close early.
“I would like to take this opportunity to thank existing shareholders for their outstanding support, which is a strong endorsement of the company’s strategy and our plans.
"With a strong balance sheet, we are in an outstanding position to generate shareholder value.”
AVR expects new shares under the SPP to be allotted and issued on March 16, 2022.