Skip to main content
Premium Trial:

Request an Annual Quote

Kazia to Raise $2M in Registered Direct Offering

NEW YORK – Kazia Therapeutics on Friday announced a registered direct offering of its American Depositary Shares (ADSs), through which it expects to raise gross proceeds of approximately $2 million.

Kazia said it will offer up to 4,444,445 of its ADSs for sale at $0.45 per ADS. Each ADS represents 10 of the firm's ordinary shares. In a concurrent private placement, the company will also issue warrants to purchase up to 4,444,445 ADSs with an exercise price of $0.583 per ADS. The warrants will be immediately exercisable upon issuance and will expire five and a half years from the date they are issued.

HC Wainwright & Co. is the exclusive placement agent for the offering, which is expected to close on Dec. 5.

Sidney, Australia-based Kazia said it will use the proceeds from the offering for general corporate expenses. The company's lead therapeutic program is paxalisib, a PI3K/AKT/mTOR pathway inhibitor that Kazia licensed from Genentech and is studying as a treatment for various forms of brain cancer. One of these studies, LUMOS2, is a Phase II trial of paxalisib in patients with IDH-mutant grade 2 and 3 gliomas.

In October, Kazia voluntarily withdrew from the Australian Securities Exchange citing costs, administrative burden, and commercial disadvantages of being listed on the exchange. The company's shares continue to trade on the Nasdaq as ADSs.