Race Oncology Ltd (ASX:RAC, OTC:RAONF) has secured A$5 million in additional capital to bolster the company's clinical and preclinical programs, following the exercising of 6,713,931 bonus options.
Key initiatives funded
Funds raised from the bonus options offer will be allocated to several key initiatives, including the Phase 1 clinical safety study of the new RC220 bisantrene formulation, the Phase 2 cardioprotection and anticancer efficacy trial, a Phase 1/2 Acute Myeloid Leukaemia (AML) trial, preclinical studies and general working capital.
The bonus options were offered at A$0.75 per option, with shareholders demonstrating strong support for the initiative. The offer resulted in an 84% exercise rate of all possible bonus options issued and led to the issuance of 6,713,931 new RAC shares.
As a further incentive, shareholders who exercised their bonus options received three new piggyback options for each bonus option.
A total of 20,141,793 piggyback options were issued, each exercisable at A$1.25 with an expiry date of May 29, 2026.
The company said it was now looking forward to advancing its clinical programs to deliver value to both patients and shareholders.
Race Oncology CEO Dr Daniel Tillett said: “I would like to extend my gratitude to our loyal shareholders who have supported Race with such resounding conviction.
Value through clinical programs
“We are focused on deploying these funds to generate value through our clinical programs for both patients and shareholders.”
Dr Tillett highlighted the significance of exceeding the 75% subscription threshold, which enables the company to further its clinical objectives.
“Importantly, since we achieved more than 75% subscription, on top of our planned Phase 1 clinical safety study and Phase 2 cardioprotection and anticancer efficacy study for the new RC220 bisantrene formulation, we can commit to supporting a proposed investigator-initiated Acute Myeloid Leukaemia clinical trial.
“We look forward to sharing more detail on this AML study soon.”