• Firm commitments received for $4.57 million Placement to new and existing institutional and sophisticated investors at $0.038 per share
• The Placement includes cornerstone participation by Merchant, who subscribed for $3 million of the placement
• Underwritten Share Purchase Plan for existing eligible shareholders to raise approximately $1.5 million at $0.038 per share
• The capital raised will be used to fund Arovella’s cell therapy programs including the development of its invariant Natural Killer T (iNKT) Cell Therapy Platform and novel DKK1peptide targeting monoclonal antibody for cancer treatment
PERTH, AUSTRALIA 24 January 2022: Arovella Therapeutics Limited (Company) (ASX: ALA), a biotechnology company focused on developing its invariant Natural Killer T (iNKT) cell therapy platform, is pleased to announce that it has received firm commitments from institutional and sophisticated investors for a $4.57 million Placement of 120,230,220 new fully paid ordinary shares (New Shares) in the Company at a price of $0.038 per share (Placement). The price of the Placement was set at a 2.5% discount to the last traded market price.
The Placement received very strong support from institutional and sophisticated investors and includes cornerstone participation by specialist life sciences institutional investor, Merchant who have subscribed for $3 million of the Placement.
The Placement is being followed by a Share Purchase Plan (SPP), to raise approximately $1.5 million, for eligible existing shareholders at the same offer price as the Placement.
Funds raised in the Placement and SPP will be used to progress development of the Company’s iNKT cell therapy platform and DKK1-peptide targeting monoclonal antibody recently licensed from the world-renowned MD Anderson Cancer Center.
Arovella Chairman Paul Hopper said: “This capital raising is a significant step towards bringing Arovella’s highly prospective cell therapy pipeline to the clinic and, ultimately, to market. This is a testament to the hard work of Michael and the team in recent years.”
Arovella Managing Director and CEO Michael Baker said: “We are excited to receive strong support from Merchant and other long-term supporters in this capital raising, and we look forward to delivering value to all of our shareholders. The funds from the Placement and SPP will allow us to progress our pipeline of innovative cancer cell therapies, which we look forward to progressing through pre-clinical and clinical trials, towards commercialisation.”
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