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Kazia Therapeutics raises $4 million to progress R&D programs

The company has capitalised on recent share price appreciation driven by emerging data from broad-based clinical trial programs and has strengthened its balance sheet while minimising investor dilution.

Kazia Therapeutics Ltd - Kazia Therapeutics raises $4 million to progress R&D programs
The placement was led by multiple high-quality institutional investors in Australia and Asia

Kazia Therapeutics Ltd (ASX:KZA) has completed an oversubscribed placement of 10 million new fully paid ordinary shares to institutional, professional and sophisticated investors in Australia and Asia raising $4 million.

The issue price of 40 cents per new share represents a 14% discount to the last closing price on October 23 of 46.5 cents.

This institutional placement, which will help Kazia further progress the GDC-0084 and Cantrixil programs through high-value data readouts during 2020, was led by Bell Potter Securities Limited.

“Encouraged by strong interest”

Chairman Iain Ross said: “We have been encouraged by strong interest in the company from professional and institutional investors.

“The Board has considered it appropriate to take the opportunity to strengthen the company’s balance sheet.

"It is testament to the company’s growing credibility and prospects that this round has been performed at a premium to our last round, and without the need for warrants, convertible notes, or similar arrangements, and was oversubscribed.

"The proceeds of the placement will allow us to complete the ongoing phase I clinical study of Cantrixil and the ongoing phase II study of GDC-0084, as well as to make very significant progress in the four collaborative studies of GDC-0084.”

Ongoing studies in 2020

Settlement is expected to occur on or around October 31 with the new shares to be issued under the institutional placement set to be allotted and begin trading on the ASX on November 1.

The new shares will rank equally with the company’s existing shares.

The placement occurs in the context of considerable clinical development activity across both the company’s oncology assets.

Kazia expects to present interim clinical data from its ongoing phase-II study of GDC-0084 in glioblastoma at the upcoming Society for Neuro-Oncology (SNO) annual meeting in Phoenix, Arizona on November 20 – 24 2019.

Further data from this and other ongoing studies is anticipated early in 2020.

Quick facts: Kazia Therapeutics Ltd

Price: 0.58 AUD

ASX:KZA
Market: ASX
Market Cap: $36.06 m
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Full interview: Kazia Therapeutics releases data from study of GDC-0084 into...

Kazia Therapeutics Ltd (ASX:KZA) chief executive officer Dr James Garner updates Proactive on the release of positive key interim data from the company's ongoing phase II study of GDC-0084 in glioblastoma, the most common and most aggressive form of primary brain cancer. Dr Garner explains...

on 11/24/2019

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