- Oncology-focused drug development company Kazia Therapeutics (KZA) establishes an “at-the-market” equity program, with Oppenheimer & Co acting as sales agent
- Under the ATM, Kazia may offer and sell via Oppenheimer up to US$35 million (A$48.7 million) worth of Kazia shares in the form of American Depository Shares (ADSs)
- Each ADS represents 10 ordinary shares
- Kazia says sales of ADSs under the ATM may be made from time to time at its sole discretion
- KZA shares down 9.22 per cent to 98.5 cents
Oncology-focused drug development company Kazia Therapeutics (KZA) has established an “at-the-market” (ATM) equity program.
The company said Oppenheimer & Co will act as sales agent.
Under the ATM, Kazia may offer and sell via Oppenheimer up to US$35 million (A$48.7 million) worth of Kazia shares.
The stock will be in the form of American Depository Shares (ADSs), with each ADS representing 10 ordinary shares.
Sales of ADSs under the ATM may be made from time to time, with the timing and volume of any sales to be determined by Kazia at its sole discretion, based on a variety of factors.
“ATM facilities are a common financing instrument for Nasdaq-listed biotech companies,” Kazia Chairman Iain Ross said.
“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.”
Kazia currently intends using any net proceeds from the ATM primarily for general
corporate purposes including working capital and capital expenditures and for expenses related to research, clinical development and commercial efforts.
Funds may also be used for potential acquisitions or investments, though the company noted it had no current commitments or agreements with respect to any acquisitions.
KZA shares were down 9.22 per cent to 98.5 cents close to the end of today’s trading session.