Thank you for the update. While I sit here in 2nd place, I feel poised like a diver in Acapulco, ready to take a dramatic plunge, as 1 of my picks (KZIA, up 40% YTD) was suspended last week due to "upcoming financial news". We all know how those usually play out, with an additional public offering that greatly dilutes shareholder value. Kazia released the news today, as they are an Australian company, and it doesn't seem as bad as usual, with the stock actually up over 4% on the ASX.
Here is a cut and paste of todays news:
KAZIA ANNOUNCES PLACEMENT OF A$4.5MILLION AND LAUNCHES SHARE PURCHASE PLAN
01/16/2023 | 10:05am EST
Kazia Therapeutics Limited (NASDAQ: KZIA; ASX: KZA), an oncology-focused drug development company, is pleased to announce a placement to professional and sophisticated investors and the launch of an associated Share Purchase Plan for eligible shareholders.
Funding will be used to drive Kazia's clinical program toward several critical inflection points, including the final data read out on the paxalisib GBM AGILE study.
Given the challenging global market conditions for biotech and associated share price impacts, the Board decided to undertake a modest capital raise, with participation from existing shareholders only, to minimise dilution. We are grateful to have the support of our major shareholders through the Placement, and welcome participation from all eligible shareholders in the coming Share Purchase Plan,' commented Iain Ross, Chairman of the Board of Kazia Therapeutics.
The proceeds of this transaction will position the company to drive towards important catalysts during CY2023. It will be a critical year for Kazia, with data read-outs expected across the full breadth of our clinical trial programs, including final data from the GBM AGILE pivotal study of paxalisib in glioblastoma.'
Key Points
Placement of A$4,500,000, comprising: o An unconditional placement of A$2,792,572 at $0.11 per share and o A conditional placement of A$1,707,428 at $0.11 per share, subject to approval by shareholders at an upcoming Extraordinary General Meeting Proceeds of the offer will provide funding for Kazia's clinical trials and for general working capital purposes Incorporation of an SPP enables participation by eligible shareholders on the same terms
About Kazia Therapeutics Limited
Kazia Therapeutics Limited (NASDAQ: KZIA; ASX: KZA) is an oncology-focused drug development company, based in Sydney, Australia. Our lead program is paxalisib, a brain-penetrant inhibitor of the PI3K / Akt / mTOR pathway, which is being developed to treat multiple forms of brain cancer. Licensed from Genentech in late 2016, paxalisib is or has been the subject of ten clinical trials in this disease. A completed phase II study in glioblastoma reported promising signals of efficacy in 2021, and a pivotal study for registration, GBM AGILE, is ongoing, with final data expected in CY2023. Other clinical trials are ongoing in brain metastases, diffuse midline gliomas, and primary CNS lymphoma, with several of these having reported encouraging interim data.
Paxalisib was granted Orphan Drug Designation for glioblastoma by the US FDA in February 2018, and Fast Track Designation for glioblastoma by the US FDA in August 2020. In addition, paxalisib was granted Rare Pediatric Disease Designation and Orphan Designation by the US FDA for DIPG in August 2020, and for atypical teratoid / rhabdoid tumours (AT/RT) in June 2022 and July 2022, respectively. Kazia is also developing EVT801, a small-molecule inhibitor of VEGFR3, which was licensed from Evotec SE in April 2021. Preclinical data has shown EVT801 to be active against a broad range of tumour types and has provided compelling evidence of synergy with immuno-oncology agents. A phase I study commenced recruitment in November 2021.
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