- Amplia Therapeutics (ATX) is set to raise $4 million to fund the phase one clinical trial of its novel focal adhesion kinase (FAK) inhibitor, AMP945
- The entitlement offer will have both institutional and retail components, with shares priced at 10 cents each in the three-for-five offer
- The price represents a 20 per cent discount to the last closing price, and a 19.6 per cent reduction to the 10-day volume-weighted average price
- Funds will be used primarily for the phase one trial (comprising roughly $2.2 million), with the remaining balance to be used to cover preclinical study costs, administration costs, as well as for working capital
- Data from the phase one trial will be relevant for multiple cancer and fibrotic disease indications, opening the door to Investigational New Drug designation and a phase two clinical trial program targeted for 2021
- Amplia Therapeutics is in a trading halt until the conclusion of the institutional entitlement offer
- Shares last traded for 12.5 cents each on June 30
Amplia Therapeutics (ATX) is set to raise $4 million to fund the phase one clinical trial of its novel focal adhesion kinase (FAK) inhibitor, AMP945.
FAK inhibitors have shown considerable promise in the treatment of cancer and other chronic diseases, as they can stop the growth and proliferation of malignant cells.
Preliminary preclinical toxicology results from a study of AMP945 have shown patients suffered no observable adverse effects, paving the way for the phase one trial.
Capital raise
Amplia is seeking to raise $4 million to fund the phase one trial.
The entitlement offer will have both institutional and retail components.
Eligible shareholders may apply for three new shares for every five shares held, at a price of 10 cents each, representing a 20 per cent discount to the last closing price on June 30, and a 19.6per cent discount to the ten-day volume-weighted average price.
Institutional shareholders may choose to take up all, some, or none of their entitlements in the three-for-five offer.
The institutional component is expected to be settled by the end of Thursday, July 2.
The retail component will open on Wednesday, July 8 and close on Tuesday, July 28.
Retail shareholders may also apply for shares up to 100 per cent in excess of their entitlement should a shortfall occur.
The entitlement offer is non-renounceable, meaning that entitlements are not transferable and cannot be traded or transferred privately.
The offer is fully underwritten by Taylor Collison, who will be issued two million options exercisable at 20 cents each no sooner than 12 months after the issue of the options. The options will expire after three years.
Funds will be used primarily for the phase one trial (comprising roughly $2.2 million), with the remaining balance to be used to cover preclinical study costs, administration costs, as well as for working capital.
The trial
AMP945 is a promising candidate in the treatment of both cancer and fibrosis.
The U.S. Food and Drug Administration has issued Orphan Drug Designations for AMP945 in both pancreatic cancer and idiopathic pulmonary fibrosis.
Data from the phase one trial will be relevant for multiple cancer and fibrotic disease indications, opening the door to Investigational New Drug designation and a phase two clinical trial program targeted for 2021.
Amplia Therapeutics is in a trading halt until the conclusion of the institutional entitlement offer. Shares last traded for 12.5 cents each on June 30.