AdAlta Limited (ASX:1AD) is initiating a placement to secure up to A$1.23 million from sophisticated and professional investors to support the analysis of the Phase I extension clinical study for AD-214 and advance ongoing partnership discussions, offering additional options to shareholders based on subscriptions, subject to approval.
The offer involves acquiring new fully paid ordinary shares in the Company at A$0.02 per share, with an additional quoted option (ASX: 1ADOA) for every two new shares subscribed for.
Furthermore, there will be one additional quoted option (Additional New Option) on the same terms for every two new shares subscribed for, subject to shareholder approval.
The Offer is expected to be completed around 14 December 2023, pending approval at an extraordinary general meeting (EGM).
In the event of full subscription, the placement will generate approximately $1.23 million, consisting of the issuance of 61.5 million New Shares and the allocation of around 30.75 million New Options to subscribers for the New Shares.
In the case of oversubscription, the Placement may, at its discretion, choose to accept such excess subscriptions, contingent upon obtaining shareholder approval.
Strategically Employing the Funds
AdAlta, a clinical stage drug discovery company specialising in novel therapeutic products derived from its i-body® platform, is advancing its lead asset, AD-214, a groundbreaking product for treating fibrotic diseases. This latest placement follows the Company’s promising results earlier this year.
The proceeds from this capital raise will be allocated towards the completion of the Phase I extension clinical study analysis of AD-214 and advancing AdAlta’s discussions regarding potential partnerships.
Earlier this year, AdAlta announced favourable in vitro results endorsing the efficacy of the targeted AD-214 intravenous dose of 10 mg/kg every two weeks.
Building upon this momentum, the Company disclosed positive safety findings in October from a Phase I extension study, demonstrating the well-tolerated nature of the 10 mg/kg intravenous dose administered biweekly, with no indications of severe adverse events or dose-limiting toxicity reported by investigators.
These developments have substantially enhanced the attractiveness of AD-214 to prospective partners, opening the door for AdAlta to engage in discussions regarding potential partnerships.
The capital raise, facilitated by the placement, will support the comprehensive analysis of Phase I study results and pave the way for further discussions concerning out-licensing and co-investment opportunities, which could potentially secure the funding needed for Phase II clinical studies.
Dr. Tim Oldham, AdAlta’s CEO and Managing Director, shared his insights on the placement.
“Partner interest in AD-214 continues to grow,” he said.
“During the last quarter we were able to progress several out-licensing conversations and were particularly pleased to receive several inbound enquiries about co- investment to further develop of AD-214. This interest reflects the continuing value add and risk reduction that our newest data is providing.”
1AD’s Australian Stock Exchange-listed share price is currently trading at $0.023 (10.45am UTC+ 8 hours).