AdAlta Ltd (ASX:1AD), a clinical-stage drug discovery company, has raised $1.87 million through an oversubscribed shortfall facility.
The cash flow comes as part of a non-renounceable pro-rata rights offer announced on April 28 and brings the total amount raised under the rights offer to the target amount of $3.15 million, excluding costs.
War chest for study of lead asset
The ASX-lister, which specialises in developing innovative therapeutic products using its i-body platform, will channel the funds into a Phase 1 extension study for AD-214, its lead fibrosis asset.
This study aims to gather additional information that will inform the design of the Phase 2 study while advancing ongoing discussions for potential partnerships, thus strengthening the commercial value of AD-214.
A portion of the funding will also be dedicated to further AD-214 partnering negotiations and to explore synergistic technology and product transaction opportunities.
Adalta chair Dr Paul MacLeman said: "Our recent results linking a clinically convenient dosing of AD-214 every two weeks with efficacy in a key fibrosis process, and our positive partnering discussions at BIO2023, increase our confidence in the return on the new investments enabled by this financing round.
“We are grateful to our existing and new shareholders who have supported it."
Option details
The shortfall facility was issued in accordance with the terms of the rights offer at an issue price of $0.025 per new share. For every two new shares shareholders subscribed for, they were granted one option.
Each new option entitled the holder to subscribe for one additional ordinary share at an exercise price of $0.03 per share, with an expiry date set for May 29, 2024.
As part of the shortfall facility, AdAlta issued a total of 74,846,752 new shares and 37,423,362 new options.