Race Oncology (ASX:RAC) has announced the successful completion of a $1.45 million placement, led by biotechnology investor Dr Daniel Tillett.
The total placement comprised approximately 21.9 million new ordinary shares at an issue price of $0.066 per share.
The company said the issue price represented a 10 per cent premium over the 30-day VWAP (volume-weighted average share price) and above the previous close on the 15 August 2019. The Placement was fully-subscribed.
According to Dr Daniel Tillett, the founder and CEO of Sydney-based biotechnology company Nucleics, which specialises in DNA sequencing services and software, anchored the placement acquiring 8.5 million shares ($561,000) under Race’s 10 per cent placement capacity.
“I investigated all the public biotechs in Australia and Race came out on top as the company with the most upside and potential,” said Dr Tillett. “I’m delighted to become involved with Race and look forward to working with the Race team.”
After completion of the placement, it is anticipated that Dr Tillett will join the Race board, and the company said three current directors also invested a total of $375,000 in the Placement, including $250,000 from Dr John Cullity.
“These Placement funds will provide Race with the resources needed to drive forward value creating research and development programs on Bisantrene,” said RAC CEO, Peter Molloy. “We now have sufficient funding for at least the current financial year.”