Avacta Group PLC has announced a successful conditional equity fundraise, raising gross proceeds of £3.25 million through an oversubscribed placing. The placing comprised 6,500,000 new ordinary shares issued at 50 pence per share.
Net proceeds of approximately £3.1 million will be allocated towards the October quarterly repayment of the company’s unsecured convertible bond.
Alongside the fundraise, Avacta has agreed to amendments to its Convertible Bond, including:
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Deferral of repayments and interest originally due on 20 January 2026 and 20 April 2026, now pushed back to 20 October 2027.
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Conversion price of the bond set at 75.0 pence.
Following admission of the new shares, Avacta’s enlarged issued share capital will total 411,048,875 ordinary shares.
· The October 2025 quarterly repayment and interest on the Convertible Bond will be paid in cash;
· Quarterly Convertible Bond repayments and interest in respect of 20 January 2026 and 20 April 2026 payment dates will be deferred until 20 October 2027 (together, the “Deferred Repayments”)
· Upon the earlier of (i) the date on which the Company publishes the data readouts of its Phase 1b trials of FAP-Dox (AVA6000) in triple negative breast cancer and (ii) 30 June 2026, the Bondholder will have the right to accelerate the satisfaction (in cash or shares) of one of both the Deferred Repayments and in addition, from 1 October 2026, at any time accelerate the satisfaction of the quarterly repayments on the Convertible Bond, subject to a maximum of one acceleration per quarter
· The conversion price of the Convertible Bond is to be set at 75.0 pence, previously set at 88.72 pence under the terms of the reset conversion price as announced on 22 April 2024. The relevant share settlement price in relation to the quarterly repayments and interest remains calculatable based on the then prevailing VWAP.
The Amendments are subject to the following conditions having been satisfied by 15 January 2026 (the “Long Stop Date”):
· Avacta completing a fundraise of, or receiving gross proceeds of at least £13,000,000 in aggregate on or prior to the Long Stop Date by way of:
o Entering into any partnership or other agreements in respect of its pharmaceutical products; and/or
o Any strategic investment into the Company; and/or;
o An equity fundraise
Christina Coughlin, CEO of Avacta commented:
“I am very pleased Avacta has been able to raise the necessary funds to pay off the October instalment of the convertible bond ahead of schedule and also reach an agreement with the Bondholder to amend the terms of the convertible bond.
“The amendment to the terms of the convertible bond is representative of the excellent progress our pre|CISION® platform continues to make in the clinic and our laboratories, and its terms demonstrate our confidence in Avacta’s ability to partner pre|CISION® across a number of modalities as well as our ability to source additional funding. The initial clinical activity observed in Phase 1b of the FAP-Dox trial is highly encouraging and has further increased our confidence in the utility of our pre|CISION® platform to transform how we treat cancer.”
