Avacta: Turner Pope
has undertaken an equity Placing (the ‘Placing’), raising a total of c.£25.7m new funding priced at 50p/share (the ’Offer Price’). The Placing, which was conducted via an accelerated bookbuild (‘ABB’), comprises both firm and conditional elements and includes a direct subscription by certain Directors (the ‘Direct Subscription’). A separate offer of new shares to new and existing retail investors at the Offer Price through the ‘REX’ platform (the ‘REX Offer’) is now underway.
The majority of the net proceeds raised through the Placing and Direct Subscription alongside the Group’s existing (unaudited) cash resources (£16.6m as of 1 January 2024) will be used to initiate and progress a Phase 2 efficacy study for the Group’s lead pre|CISION™ clinical programme, AVA6000 for which, subject to FDA approval, dose expansions and efficacy studies are expected to begin in 2H 2024 in the US. Considered to be a major value-driving event for Avacta, the dose expansions are likely to be in several orphan indications, including soft tissue sarcomas. Understanding that the c.24 months cash runway now secured should be sufficient to support planning for introduction of the Group’s first targeted chemotherapy to market before the end of 2026, the Board’s key ambition to retain 100% ownership of its pre|CISION™ platform looks likely to be realised.
Subsequent multiple licensing and partnerships deals with international pharmaceutical groups that can be expected to follow this first successful commercialisation, in parallel with Avacta’s own ongoing in-house developments, would dramatically accelerate roll-out of the technology to a broad range of solid tumour candidates, in the process ensuring substantial medium and long-term rewards for shareholders. TPI acted as Joint Bookrunner to the Placing.
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