Arovella Therapeutics Ltd (ASX:ALA) has raised $20 million, including a $15 million cornerstone investment. The raise fully funds the completion and reporting of a Phase 1, first-in-human clinical trial for ALA-101 in patients with CD19-positive blood cancers, as well as strengthening the company’s iNKT cell therapy pipeline and advancing its solid tumour products.
The company received firm commitments to raise the $20 million from institutional and sophisticated investors via a placement of 117.6 million shares at $0.17 per share — a 2.9% discount to the last traded market price on January 7, 2025.
Notably, the raise includes a single cornerstone commitment of $15 million from an unnamed Australian-based private investor. Commitments were also received from new and existing Australian institutional and sophisticated investors, including Pengana Capital Group.
The raise was well received by the market, with the share price gaining as much as 16% on news of the successful placement.
Well capitalised to execute goals
Upon completion of the placement, ALA will hold some $30.6 million in cash and cash equivalents.
Arovella chair Dr Thomas Duthy said: “The level of support for the placement, driven by a substantial cornerstone commitment from an Australian-based private investor, along with new and existing institutional and sophisticated investors, highlights the potential of our highly differentiated cell therapy platform and our significant progress to date.
“It provides us with the necessary capital to execute our goals, notably to assess the clinical benefit of our proprietary CAR-INKT cells in cancer patients.
Arovella managing director and CEO Dr Michael Baker added that he is “delighted with the level of support that we have received from new and existing investors.”
Critical milestones ahead
The company outlined a number of critical milestones that it expects to achieve over the coming year, including:
- securing IND approval through the US FDA to conduct a Phase 1 clinical trial in CD19-positive non-Hodgkin's lymphoma and leukemia;
- commencing a Phase 1 clinical trial;
- obtaining clinical data from initial patients dosed with ALA-101; and
- securing proof-of-concept data for its solid tumour programs directed toward gastric and/or pancreatic cancer.
“This is a pivotal time for Arovella, which is a global pioneer in developing CAR-INKT cell therapeutics,” said Duthy.
Baker added, “We are excited to take ALA-101 into the clinic and assess its impact on patients with CD19+ blood cancers. The company is well positioned, and we look forward to building on our success and creating value for our shareholders.”