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Race Oncology (ASX:RAC) to raise $5.4M for anti-cancer drug

Health Care
ASX:RAC      MCAP $202.7M
05 May 2021 12:50 (AEST)

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Race Oncology (RAC) is looking to raise $5.4 million in an oversubscribed placement alongside a new bonus offer.

Under the placement, the company will issue around 1.8 million new shares for $3 each — a 2.3 per cent discount on its recent trading levels.

Participants in the placement will receive one free attaching option for every 20 new shares subscribed for.

Funds from the placement will provide Race with additional capital to be deployed towards its three-pillar strategy, through which the company is investigating its Bisantrene candidate as a potential precision oncology agent and a heart-friendlier chemotherapeutic.

Last month, the company revealed it is teaming up with The University of Newcastle to investigate the heart safety of its Bisantrene drug.

Race has also announced a bonus option to existing eligible shareholders on the basis of one bonus option for every 20 shares held.

“We thank our new and existing shareholders for their continuing support. We believe that this raise will accelerate our plans and rewards our loyal shareholders,” CSO Dr Dainel Tillett said.

“Race remains efficient with our capital usage and will always be focused on achieving the best outcome for our shareholders and the patients who may be helped by Bisantrene,” he added.

On the market, Race is up 5.21 per cent and is trading at $3.23 per share at 11:23 am AEST.

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