AdAlta Raises A$0.5 Million at 20% Premium in Private Placement
AdAlta Limited has raised up to A$0.5 million through a premium-priced private placement, bolstering its 'East to West' cellular immunotherapy strategy focused on advancing CAR-T therapies for solid cancers.
- A$0.5 million raised via non-brokered private placement at 20% premium
- Placement led by Hong Kong-based sophisticated investor David Pevcic
- Funds to advance licensing and collaboration agreements for CAR-T therapies
- Part of placement subject to shareholder approval with shares and options issued
- Supports AdAlta’s strategy to bridge Asian innovation with Western markets
Strategic Capital Injection
AdAlta Limited (ASX, 1AD), a clinical-stage biotechnology company specialising in cellular immunotherapies for solid cancers, has successfully raised up to A$0.5 million through a non-brokered private placement. The placement was made to a new Hong Kong-based sophisticated investor, David Pevcic, at a share price of 0.3 cents, representing a 20% premium to the recent market close. This capital injection comes without broker fees, underscoring the direct confidence in AdAlta’s growth trajectory.
Fueling the 'East to West' Strategy
The funds raised will be pivotal in advancing AdAlta’s ambitious 'East to West' cellular immunotherapy strategy. This approach seeks to harness cutting-edge CAR-T cell therapies developed in Asia; particularly China’s burgeoning biotech sector; and adapt them for global markets, including Western regulatory environments. The company is progressing towards finalising a definitive development and collaboration agreement for its first CAR-T therapy asset, with funding from this placement expected to support the initial stages of this partnership.
Investor Confidence and Growth Prospects
CEO Tim Oldham highlighted the unsolicited nature of the investment as a strong endorsement of AdAlta’s strategy and the potential for Asian innovation to improve cancer treatment worldwide. The placement not only strengthens working capital but also positions AdAlta to accelerate multiple licensing and private financing transactions concurrently, rather than sequentially. Additionally, the company is evaluating other strategic licensing opportunities in adjacent fields, reflecting a broader ambition to expand its therapeutic portfolio.
Placement Terms and Shareholder Approval
The placement shares and attaching options mirror the terms of a recent fully subscribed entitlement offer, with 166.7 million new shares to be issued at 0.3 cents each and 83.3 million options exercisable at 1 cent, expiring in June 2028. While most shares will be issued under the company’s existing capacity, a portion requires shareholder approval at the upcoming Annual General Meeting in November 2025. This introduces a timing element to the full deployment of funds.
Positioning in a High-Growth Market
AdAlta operates in the rapidly expanding cellular immunotherapy market, projected to grow at 34% annually to reach over US$20 billion by 2028. Its focus on solid tumours, which represent 90% of cancers and remain underserved by current therapies, positions the company in a high-demand niche. Beyond CAR-T therapies, AdAlta’s pipeline includes its AD-214 fusion protein targeting fibrotic diseases, further diversifying its clinical-stage assets.
Bottom Line?
This premium-priced placement not only validates AdAlta’s strategic direction but also sets the stage for critical licensing deals that could reshape its growth outlook.
Questions in the middle?
- Will shareholder approval for the remaining placement shares and options be secured without delay?
- How soon can AdAlta finalise and announce the definitive CAR-T collaboration agreement?
- What other strategic licensing opportunities might emerge alongside the 'East to West' initiative?
