AdAlta Ltd (ASX:1AD) has launched a placement to sophisticated and professional investors to raise up to A$1.23 million at an issue price of 2 cents per new share, with funds to go towards the completion of analysis of Phase 1 extension clinical study of AD-214 and to progress ongoing partnering discussions.
The clinical-stage drug discovery company is developing novel therapeutic products from its i-body® platform. The placement reflects the growing interest in 1AD’s work and its current level of progress.
The offer builds on the company’s significant progress enabling the completion of the final results analysis of the Phase 1 extension study and the further advancement of discussions for out-licensing of, and co-investment in, AD-214, which could fully fund Phase 2 clinical studies.
The money will go to:
- completing the final analysis of the healthy volunteer cohort of the ongoing Phase I extension study of AD 214;
- progressing partnering and/or licensing discussions for the AD-214 product to help move AD 214 into Phase 2 studies and beyond;
- evaluating synergistic external technology and product collaboration and transaction opportunities to expand and accelerate AdAlta’s product pipeline; and
- to the extent any funds remain, funding general working capital.
CEO and managing director Dr Tim Oldham said, “Partner interest in AD-214 continues to grow. 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 AD-214.
"This interest reflects the continuing value add and risk reduction that our newest data is providing.”
About the raise
The placement to sophisticated and professional investors comes at an issue price of 2 cents ($0.02) per new share together with:
- one quoted option with an exercise price of $0.03 per share and an expiry date of May 29, 2024 being offered for every two new shares subscribed for under the offer; and
- one additional new option on the same terms for every two new shares subscribed for under the offer, if shareholders approve the issue of these additional new options at an extraordinary general meeting (EGM) of the company that will be called for this purpose and which is anticipated to be held on or about December 14.
If fully subscribed, the offer will raise around $1.23 million from the issue of 61.5 million new shares together with the grant of around 30.75 million new options to subscribers for the new shares.
AD-214 shows promising efficacy and safety profile
AdAlta has released new in-vitro results that bolster the efficacy of AD-214 at an intravenous dose of 10 milligrams per kilogram biweekly, a development announced in July 2023. Further to these findings, in September 2023, the company revealed additional results that suggest the viability of a more cost-effective and patient-friendly subcutaneous dosing regimen.
October 2023 marked the disclosure of preliminary safety data from AdAlta's Phase 1 extension study. The results indicate that the 10 milligram per kilogram intravenous dose, administered every two weeks, was well-received, with subjects showing no serious adverse events or dose-limiting toxicity.
The accumulation of these findings significantly enhances the value proposition of AD-214 to prospective partners, addressing crucial inquiries made during due diligence processes and substantially mitigating risks related to dosing decisions for forthcoming Phase 2 studies.
AdAlta expects the remaining data from the Phase 1 extension study will lend additional support to the due diligence undertakings of interested partners, thereby facilitating further development and commercial partnerships for AD-214.