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- Race Oncology (RAC) is set to raise a $1.8 million placement
- The bio-tech company will issue six million ordinary shares at 30 cents each
- Funds will be put towards Race’s 5-path strategy which includes five planned trials for testing its Bisantrene drug on various cancers
- The placement received strong support from Merchant Opportunities Fund, a bio-tech focused investor
- Placement shares are expected to be issued by March 13th
- Race Oncology is up 19.7 per cent with shares trading for 39.5 cents each
Race Oncology (RAC) will raise $1.8 million through a strategic placement of six million ordinary shares at 30 cents per share.
The placement has received support from Merchant Opportunities Fund, an institutional investor with a focus on biotechnology. Its interest has been shown by its 15 per cent stake in PolyNovo back in 2012. Merchant also maintains a long term investment in Rhythm Biosciences, a medical diagnostics company.
“To have attracted such strong support from a successful biotech institutional investor with a proven track record of picking promising early stage life sciences companies is a significant validation of Race’s plans and future potential,” CEO Peter Molloy said.
The funds will allow Race to advance its ‘5-path’ clinical development strategy for Bisantrene.
Bisantrene is a phase two cancer drug which Race first launched last year. The company is planning to undertake five trials of Bisantrene this year which it outlined in its December 2019 quarterly report.
The 5-path strategy is based on combination therapy of Bisantrene in ovarian and breast cancer and the elimination of Measurable Residual Disease (MRD) in Acute Myeloid Leukaemia.
The issue price of 30 cents represents a nine per cent discount to the last closing price and a 9.5 per cent discount to the 20-day volume-weighted avergae price.
Shares under the placement are expected to be issued by March 13 2020.
Race Oncology is up 19.7 per cent on the market this morning, with shares trading for 39.5 cents each at 11:25 am AEDT.
