Radiopharm Theranostics Ltd (ASX:RAD) has launched a 1 for 3.55 accelerated non-renounceable entitlement offer to raise up to $10 million, which will provide the company with a runway until at least the end of 2023, including three new assets acquired since IPO.
The offer price is A$0.14 per new share, which represents a 12.2% discount to the theoretical ex-rights price (TERP1 of $0.16; an 18.9% discount to the 30-day volume weighted average price (VWAP) of $0.173, and a 15.2% discount to the last traded price of shares on October 12, 2022, of $0.165.
Inclusive of option
Eligible shareholders will be able to subscribe for one new share in Radiopharm for every 3.55 existing shares and participants will receive one new option for every new share issued.
These options will have an exercise price of A$0.20 with an expiry date of November 30, 2026.
Director participation
Demonstrating their confidence in the company’s strategy of developing radiopharmaceutical products for diagnostic and therapeutic uses, chairman Paul Hopper and CEO Riccardo Canevari have indicated their intention to participate.
Hopper has committed to subscribe for A$500,000 under the offer and Canevari has subscribed for approximately A$170,000.
Use of funds
Funds will support the company’s ongoing development work, including for Pivalate which has delivered positive Phase 2a data in a brain mets trial.
READ: Radiopharm Theranostics welcomes positive Phase 2 data for F-18 Pivalate in brain metastases trial
Under the Phase 2a trial, F 18 Pivalate PET showed high uptake regardless of the origin of primary tumour. This indicates that Pivalate can be used to monitor cerebral metastases.
Other outcomes include:
- Patients without previous external beam radiation showed higher tumour uptake of the radiotracer, while previously treated patients show a trend towards lower uptake of the radiotracer.
- No adverse safety events, confirming the great safety profile observed in the Phase 2 trial.
The results are being presented at a Joint Meeting of the European Organisation for Research and Treatment of Cancer (EORTC), the (USA) National Cancer Institute (NCI), and the America Association for Cancer Research (AACR) in Barcelona, Spain, October 26-28, 2022
The company is anticipating to meet with the FDA for a Type C meeting in early 2023.
Radiopharm is expected to have five fully funded Phase 1 clinical trials underway by the beginning of 2023, whilst progressing Pivalate into late-stage trials in the US.
Positive progress
Executive chairman Paul Hopper said: “We are thrilled to have delivered a positive Phase 2 trial readout in brain mets which has a significant unmet clinical need just 11 months since IPO.
"Whilst the company has spent $2 million less than forecast in its IPO Prospectus it has also acquired three exciting new platform technologies since IPO.
"Post raising the company is expected to have $36.9 million of cash and we look forward to 2023 where we expect to have five Phase 1 clinical trials underway and have progressed Pivalate into late-stage trials in the US, subject to the FDA approval.”
Offer details
The Entitlement Offer includes an institutional component being conducted today and a retail component under which eligible retail shareholders in Australia and New Zealand will be invited to participate.
The retail offer will open on Tuesday, October 25, 2022, and close at 5:00pm (Sydney time) on Friday, November 11, 2022.
Bell Potter Securities Limited is acting as sole lead manager to the offer while Baker Young is acting as co-manager.
A presentation on the entitlement offer has been lodged with ASX today and is able to be downloaded from ASX’s website, www.asx.com.au.