Starpharma (ASX:SPL) has launched a fully underwritten renounceable entitlement offer to raise approximately $32 million, strengthening its balance sheet and providing a pro forma cash balance of $44.5 million.
The company said it will issue roughly 56 million new ordinary shares at an offer price of $0.57 on a one-for-seven-and-a-half basis to eligible shareholders, with proceeds expected to extend the company's cash runway into financial year 2028 and support progression of the DEP HER2-Lu Phase 1 study and further development of dendrimer-based oncology assets.
The offer price represents a discount to recent trading levels and the theoretical ex-rights price and is being managed by Canaccord Genuity as lead manager and underwriter.
Starpharma said the capital raise follows recent announcements about applying its dendrimer technology in radioligand therapy across multiple oncology targets and supports a strategy to grow a pipeline of targeted dendrimer oncology assets.
Starpharma Chief Executive Officer Cheryl Maley said, “This Offer is designed to support Starpharma’s strategy to build value from our proprietary dendrimer platform, with a clear focus on advancing targeted oncology assets where we believe our technology can offer differentiated advantages.
“Recent preclinical data from our DEP HER2-Lu program highlights the potential of our dendrimer technology in radioligand therapy and supports our broader strategy to expand a pipeline of novel targeted dendrimer oncology assets.
“The proceeds from this fully underwritten Offer are expected to strengthen Starpharma’s balance sheet, extend our cash runway into FY28, and provide the capital required to progress the DEP HER2-Lu Phase 1 study while accelerating development of additional assets within our DEP pipeline.
“The Starpharma Board and I are grateful for the continued support of our shareholders, many of whom have been on this journey with us for several years. The support from new investors and existing shareholders participating as sub-underwriters for the Offer demonstrates confidence in Starpharma’s proprietary dendrimer technology and strategy for long-term value creation.”
Starpharma said proceeds are earmarked to complete the first-in-human and dose-escalation stages of the DEP HER2 Lu Phase 1 study, to accelerate the development of novel targeted dendrimer oncology assets to broaden the DEP pipeline, and to fund working capital and transaction costs.
