The placement was anchored by prominent biotech investor Daniel Tillett, who acquired 8.5 million shares worth $561,000 under Race’s 10% placement capacity.
Founder of Sydney-based biotech
Tillett is founder and CEO of Sydney-based biotech Nucleics, a private Australian biotechnology company producing and selling world-leading DNA sequencing software to the genomics industry.
Nucleics software-as-a-service tools are in use in more than 30 countries and more than 250 companies and institutions.
Driving forward value-creating research
Race chief executive officer Peter Molloy said the placement funds would provide Race with the resources needed to drive forward value-creating research and development programs on its cancer drug Bisantrene.
He added: “We now have sufficient funding for at least the current financial year.”
Directors participated in placement
Three current RAC directors also invested a total of $375,000 in the placement, including $250,000 from John Cullity.
Other RAC shareholders invested $510,000, comprising 5 million shares worth $330,000 under the company’s 15% capacity and a further 2.7 million worth $180,000 subject to shareholder approval.
Tillett to join Race board
The issue price represented a 10% premium over the 30-day volume-weighted average price and above the previous close on August 15.
All shares issued will have attached one option for every two shares, exercisable at 9.9 cents on or before August 31, 2021.
After completion of the placement, it is anticipated that Tillett will join the Race board.
Placement anchor Tillet said he was delighted to become involved with Race and looked forward to working with its team.
He said: “I investigated all the public biotechs in Australia and Race came out on top as the company with the most upside and potential.
Pursuing later-stage drug assets
Race’s business model is to pursue later-stage drug assets in the cancer field that have been overlooked by major pharmaceutical companies.
Its first asset is Bisantrene, a chemotherapy drug which was the subject of more than 40 clinical studies during the 1980s and 1990s before being abandoned.
Bisantrene is the subject of two recently granted US patents and third allowed US patent.