- Clinical-stage biotech company AdAlta (1AD) is looking to raise up to $5.95 million through a placement and non-renounceable entitlement offer
- The company received commitments from investors for the placement, which is raising $3.75 million through the issue of about 51.37 million shares priced at 7.3 cents each
- The entitlement offer seeks to raise up to $2.2 million and will allow eligible shareholders to acquire one new share for every eight held at the same price as the placement
- AdAlta says the funds will be used to develop improved formulations of its AD-214 drug candidate, discovering i-bodies and advancing its i-body platform capabilities
- Company shares have been trading down 2.47 per cent at 7.9 cents
AdAlta (1AD) has received commitments to raise $3.75 million through a placement to institutional and sophisticated investors.
The company’s intention to raise capital raise was announced when it went into a trading halt last Friday on December 10.
The clinical-stage biotech company will issue roughly 51.37 million shares priced at 7.3 cents per share, which represents a 10.4 per cent discount to the 15-day volume-weighted average price and a 9.9 per cent discount to the last closing price.
AdAlta intends to use the money to develop inhaled and improved formulations of the AD-214 drug candidate for clinical trials in Idiopathic Pulmonary Fibrosis (IPF) and Interstitial Lung Disease (ILD) patients.
Prior to the company entering the halt, it reported that tests of the AD-214 drug exceeded expectations. Tests showed it can be converted into fine droplets that enter the smaller airways of the lungs and can remain bound to the target, which was a pivotal step in developing a lower cost inhaled formulation for IPF patients.
Additionally, the funds will go towards discovering i-bodies against three new targets and advancing i-body platform capabilities to enable new collaborations and continue to address the challenging drug targets in the biopharmaceutical industry.
Chair Dr Paul MacLeman was pleased with the support received for the placement.
“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,” he said.
The placement shares are expected to settle on December 20.
In addition to the placement, the company will launch a non-renounceable entitlement offer to raise up to an extra $2.2 million through the issue of up to roughly 30.71 million shares at the same price as the placement.
Eligible shareholders will be able to acquire one new share for every eight shares held. Directors Paul MacLeman, David Fuller, Tim Oldham and Robert Peach have already indicated their intention to take up their entitlements under the offer in full.
The entitlement offer will be open from December 23 until January 31 and new shares will be allocated on February 7 to commence trading on the following day.
Company shares were down 2.47 per cent to trade at 7.9 cents at 2:11 pm AEDT.