Race Oncology Limited (ASX: RAC) announced today the successful completion of a $1.45 million placement, led by prominent biotechnology investor Dr Daniel Tillett.
The placement comprised 21.9 million new ordinary shares at an issue price of $0.066 (6.6 cents) per share.
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.
Dr Daniel Tillett, the founder and CEO of Sydney-based tech 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.
Three current RAC directors also invested a total of $375,000 in the Placement, including $250,000 from Dr John Cullity.
In addition, other current RAC shareholders invested a total of $510,000, comprised of 5.0 million shares ($330,000) under the Company’s 15 per cent capacity and a further 2.7 million shares ($180,000) that are subject to shareholder approval.
“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.”
All shares to be issued under the Placement will have attached 1:2 unlisted options (two options for each share), which are exercisable at $0.099 (9.9 cents) on or before 31 August 2021. A shareholders’ meeting will be held as soon as possible to approve the issue of shares and options to directors and the 2.7 million shares (and attaching options) above the Company’s current placement capacity.
