Avacta Group plc (AIM: AVCT), a life sciences company developing innovative, targeted oncology drugs and diagnostics, is pleased to announce that, further to its announcement on 28 February 2024, the Company has successfully placed 51,269,609 Placing Shares at the Offer Price of 50 pence per Placing Share with new and existing investors, including a number of high quality institutions and a European specialist healthcare fund.
In light of the strong demand received both from existing investors and potential new holders, the Board has decided to increase the size of the Placing from approximately £20 million to £25.7 million.
Concurrently with the Placing, certain Directors of the Company have subscribed for, in aggregate, 130,000 Direct Subscription Shares pursuant to the Direct Subscription at the Offer Price.
The Placing Shares and Direct Subscription Shares represent, in aggregate, approximately 17.8% per cent. of the issued share capital of the Company immediately prior to the announcement of the Placing.
Stifel Nicolaus Europe Limited (“Stifel”), Peel Hunt LLP (“Peel Hunt”) and Turner Pope Investments (TPI) Limited (“Turner Pope” and, together with Stifel and Peel Hunt, the “Joint Bookrunners”) acted as joint bookrunners in respect of the Placing. Beech Hill Securities, Inc. (“Beech Hill”) acted as US placing agent.
The New Shares, when issued, will be credited as fully paid and will rank pari passu in all respects with the Company’s then existing Shares, including the right to receive all dividends and other distributions declared, made or paid on or in respect of such shares after the date of issue.
As announced on 28 February 2024, the Company is also undertaking a REX Offer, which is expected to close for applications at or around 11.00 a.m. on 4 March 2024 (although, eligible investors should note that financial intermediaries may have earlier closing times.). The results of the REX Offer are expected to be announced on or around 4 March 2024.
27,390,485 Firm Placing Shares and 130,000 Direct Subscription Shares will be issued and allotted under the Company’s existing share capital authorities. 23,879,124 Conditional Placing Shares and any REX Offer Shares that are subscribed for will be issued and allotted conditional on shareholder approval at the General Meeting at 11.00 a.m. on 18 March 2024. The Company expects to post the circular, including the notice of General Meeting later today or tomorrow.
Application has been made to the London Stock Exchange for admission of the New Shares. It is expected that admission of the Firm Placing Shares and Direct Subscription Shares will become effective at or around 8.00 a.m. on 4 March 2024 or such later time and date (being not later than 8.00 a.m. on 11 March 2024) and admission of the Conditional Placing Shares and such number of REX Offer Shares as are subscribed for will become effective at or around 8.00 a.m. on 19 March 2024 or such later time and date (being not later than 8.00 a.m. on 26 March 2024), in each case as the Bookrunners and the Company may agree.
Alastair Smith, Chief Executive Officer of Avacta Group plc, commented:
“Under very challenging market conditions we have raised financing that allows Avacta to progress at full speed its lead pre|CISION™ targeted chemotherapy, AVA6000, into the expansion and Phase 2 efficacy studies. The emerging clinical data from the Phase 1 safety study strongly supports our belief that pre|CISION™ can change the way in which cancer is treated and we are pleased that we are now in a position to also progress the broader pre|CISION™ pipeline.
“Critically, this financing provides Avacta with 24 months of cash runway to focus on advancing AVA6000 through the clinic, as well as progressing other assets earlier in the development cycle to hit key commercial milestones.”
