Race Oncology (ASX:RAC) says it has received binding commitments to raise $5.4 million before costs in an oversubscribed equity placement to new and existing institutional and sophisticated investors.
The company also announced the commencement of a bonus issue of options to existing eligible shareholders.
CEO and managing director Phil Lynch said, “This new funding supports efforts to deliver outsized returns to shareholders via our three Pillar strategy, where we are investigating Bisantrene as both a potential precision oncology agent, and as a heart friendlier chemotherapeutic. We appreciate the amount of interest shown in both Race and Bisantrene through this process and thank all those who participated in the Placement.”
Dr Daniel Tillett, the company's chief scientific officer and executive director said, “We thank our new and existing shareholders for their continuing support. We believe that this raise will accelerate our plans and rewards our loyal shareholders. Race remains efficient with our capital usage and will always be focused on achieving the best outcome for our shareholders and the patients who may be helped by Bisantrene.”
Race said the placement will see the issue of approximately 1.8 million new fully paid ordinary shares at an issue price of $3 per share. The issue price represents a 2.3 per cent discount to the last traded price and a 7.8 per cent discount to the 10-day volume-weighted average price of $3.25.