Radiopharm Theranostics Ltd (ASX:RAD) will use the $10 million to be raised in an entitlement offer of 1-for-2.35 new shares at $0.07 to progress its four clinical trials.
Radiopharm, the developer of a world-class platform of radiopharmaceutical products for both diagnostic and therapeutic uses, expects to issue up to 144.4 million new fully paid ordinary shares under the offer, which will open on November 8 and close on November 24.
The offer price represents a 23.1% discount to the theoretical ex-rights price of $0.091, a 30% discount to the last traded price of Radiopharm shares on October 30 of $0.10 and a 46.2% discount to the 15-day volume weighted average price of $0.13.
Funds use
The ASX-lister's asset portfolio features four platforms that, combined, target three-quarters of the causes of death from cancer, including treatment for cancers of the lung, breast, head and neck, along with solid tumours like brain metastases and gliomas.
The company intends to use proceeds of the offer to advance its clinical trials towards the achievement of multiple inflection points, including RAD 301 Imaging Phase I read out, RAD 101 Imaging Phase IIb recruitment, RAD 204 Phase 1 therapeutic recruitment and RAD 202 Phase 1 therapeutic recruitment.
Funds will also be applied towards ongoing working capital as well as the cost of the new share offer.
READ: Radiopharm Theranostics receives FDA greenlight to start Phase 1 imaging trial of RAD 301
Under the offer, eligible shareholders on record as of November 3 will be invited to participate in the equity raising.
Eligible shareholders can choose to take up all, part or none of their entitlement shares, which are non-renounceable, non-transferable and will not be traded on ASX.
Shareholders who do not take up their entitlements and those who are not eligible will not receive any value for those shares that they do not take up or would have received had they been eligible.