Kazia Therapeutics Ltd (ASX:KZA, NASDAQ:KZIA) has established an ‘at the market’ (ATM) equity program, appointing full-service brokerage and investment bank Oppenheimer & Co. Inc as sales agent.
The oncology-focused drug development company can now offer and sell, via Oppenheimer, up to US$35 million of its ordinary shares as American Depository Shares (ADSs), each of which represents 10 ordinary shares.
Kazia hopes to use the proceeds to cover general corporate purposes, which may include:
- Working capital and capital expenditures;
- Expenses related to research, clinical development and commercial efforts;
- General and administrative expenses; and
- Potential acquisitions of, or investments in, companies, technologies, products or assets that complement Kazia’s business.
Kazia chair Iain Ross said ATM facilities were a common financing instrument for NASDAQ-listed biotech companies.
“We consider it prudent capital management for Kazia to have access to such a facility, so that it may respond most efficiently and most cost-effectively to emerging investor demand,” he explained.
The fine print
ADSs can be sold under the ATM at Kazia’s sole discretion, based on a variety of factors.
In fact, Kazia may determine to sell some, all, or none of the ADSs under the ATM and may terminate the facility at its discretion.
Sales made through the ATM may be made at market prices at the time of a sale, or at prices related to prevailing market prices. As a result, actual sales prices may vary.
Before purchasing ADSs in the offering, Kazia recommends prospective investors read the shelf registration statement, the base prospectus and the accompanying prospectus supplement.
All of these documents are available by visiting EDGAR on the Security Exchange Commission’s (SEC’s) website.
About Kazia
Kazia is headquartered in Sydney, Australia, and is dual-listed on the NASDAQ.
The company’s lead program is paxalisib, which is being developed to treat glioblastoma — the most common and most aggressive form of primary brain cancer in adults.
Licensed from Genentech in late 2016, paxalisib commenced recruitment to GBM AGILE, a pivotal study in glioblastoma, in January 2021. Seven additional studies are active in various forms of brain cancer.
Paxalisib was granted Orphan Drug Designation for glioblastoma from the US Food and Drug Administration in February 2018, as well as Fast Track Designation for glioblastoma in August 2020.
In addition, paxalisib was granted Rare Pediatric Disease Designation and Orphan Designation for DIPG — a rare, fast-growing brain stem tumour that usually occurs in children — in August 2020.
Kazia is also developing EVT801, a small-molecule inhibitor of VEGFR3, which was licensed from Evotec SE in April 2021.
Promisingly, preclinical data has shown EVT801 to be active against a broad range of tumour types. It’s also provided compelling evidence of synergy with immuno-oncology agents.
A phase one study on the treatment candidate commenced recruitment in November 2021.