On January 1, 2023 Kazia Therapeutics Limited (ASX: KZA; NASDAQ: KZIA), an Australian oncology-focused biotechnology company, reported a placement of KZA shares, to institutional and sophisticated investors in Australia, at a price of A$0.11 per share (Press release, Kazia Therapeutics, JAN 17, 2023, View Source [SID1234626276]). The placement will raise A$4.5 million (exclusive of costs).

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Placement

The Placement to professional and sophisticated investors consists of an:

A$2,792,572 unconditional institutional placement of 25,387,018 New Shares, representing approximately 16% of the total shares of Kazia on issue prior to the issue of the New Shares; and

A$1,707,428 institutional placement of 15,522,075 New Shares, conditional on Kazia shareholder approval for the purposes of ASX Listing Rule 7.1.

The price of both the Unconditional Placement and the Conditional Placement will be A$0.11 which represents a 13% premium to the 15-day volume-weighted average price (VWAP) on the Australian Securities Exchange (ASX) up to and including 11 January 2023 of A$0.097.

New Shares to be issued under the Unconditional Placement will be issued without shareholder approval under the Company’s existing placement capacity under ASX Listing Rules 7.1. Settlement and issuance of shares is expected to occur on or around January 16, 2023, with quotation expected on January 17, 2023 in Australia. The New Shares will rank equally with the Company’s existing shares on issue.

An Extraordinary General Meeting (EGM) is expected to be held on 24 February 2023 to seek approval for the issuance of New Shares under the Conditional Placement. Kazia will provide eligible shareholders with a notice of meeting and explanatory materials over the coming days.

The Placement was not underwritten.

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.