Arovella fully funded to complete phase 1 with $20m placement
Highlights:
Firm commitments received for a $20 million Placement at $0.17 per share, representing a 2.9% discount to last trade
Single cornerstone commitment of $15.0 million from an Australian-based private investor
Additional commitments received from new and existing Australian institutional and sophisticated investors, including from Pengana Capital Group
Post completion of the placement, the Company will hold approximately $30.6 million in cash and cash equivalents1
The capital raised fully funds the completion and reporting of a phase 1, first-in-human clinical trial for ALA-101 in patients with CD19-positive blood cancers
In addition, Placement proceeds will support the continued development of Arovella’s solid tumour programs and pipeline expansion
Arovella Therapeutics Limited (ASX: ALA) (Arovella or the Company), a biotechnology company focused on developing its invariant Natural Killer T (iNKT) cell therapy platform, is pleased to announce that it has received firm commitments from institutional and sophisticated investors, to raise approximately $20 million (before costs) under a placement of 117.6 million new fully paid ordinary shares in the Company (Shares) at $0.17 per Share (Placement). The pricing of the Placement represents a 2.9% discount to the last traded market price (7 January 2025).
Arovella’s Chairman, Dr Thomas Duthy, said: “This is a pivotal time for Arovella, which is a global pioneer in developing CAR-iNKT cell therapeutics. The level of support for the Placement, driven by a substantial cornerstone commitment from an Australian-based private investor, along with new and existing institutional and sophisticated investors, highlights the potential of our highly differentiated cell therapy platform and our significant progress to date. It provides us with the necessary capital to execute our goals, notably to assess the clinical benefit of our proprietary CAR-iNKT cells in cancer patients.”
Arovella Managing Director and CEO Dr Michael Baker said: “I am delighted with the level of support that we have received from new and existing investors. We are excited to take ALA-101 into the clinic and assess its impact on patients with CD19+ blood cancers. The Company is well positioned, and we look forward to building on our success and creating value for our shareholders.”
Over the remainder of CY2025, Arovella expects to achieve several critical milestones, including:
Securing IND approval through the US FDA to conduct a phase 1 clinical trial in CD19-positive nonHodgkin’s lymphoma and leukemia;
Commencing a phase 1 clinical trial;
Obtaining clinical data from initial patients dosed with ALA-101; and
Securing proof-of-concept data for its solid tumour programs directed toward gastric and/or pancreatic cancer.
Funds raised under the Placement will be used to complete and report data from the planned phase 1, first-inhuman clinical trial for Arovella’s lead product, ALA-101. The phase 1 clinical trial is for patients with CD19positive non-Hodgkin’s lymphoma and leukemia. Funds raised under the placement will also be used to strengthen Arovella’s iNKT cell therapy pipeline and advance Arovella’s solid tumour products, and for general working capital purposes.