Kazia Therapeutics Ltd (ASX:KZA) has raised $1.8 million through a share purchase plan (SPP) to eligible shareholders in Australia and New Zealand and this follows a $7.2 million institutional placement.
The SPP offered shareholders the opportunity to apply for up to $30,000 worth of shares in Kazia, without incurring brokerage or other transaction costs.
Shares were offered at a price of 40 cents per share, which was equal to the price under the institutional placement announced on April 8 which raised approximately $7.2 million.
Funds from the placements will be used to progress the paxalisib clinical trial program and to complete analysis of the ongoing Phase I study of Cantrixil, to continue to provide contributory funding towards four other trials and as working capital for the company.
Proceeds to “enrich” R&D programs
Chairman Iain Ross said: “Following our successful institutional placement in early April, the board considered it imperative that existing shareholders have the opportunity to augment their holdings in the company at the same price as the institutional investors.
“We are delighted to have received a very high level of engagement with this SPP.
“As on previous occasions, the proceeds will be applied directly to progressing and enriching the company’s R&D programs.
“We expect paxalisib to transition to a pivotal study in the second half of this year, so it is a particularly critical time for the company.
“We are, as always, grateful for the strong and enthusiastic support of our shareholders and look forward to sharing further progress as the year advances.”
4.5 million new shares to be issued
Around 4.5 million new shares will be issued under the SPP and it is expected that new shares under the SPP will be issued by Kazia and allotted to successful applicants on Monday, May 11.
Normal trading of SPP shares is expected to begin on Tuesday, May 12, with holding statements to be dispatched around Thursday, May 14.