Arovella fully funded to complete phase 1 enrolement and generate clinical data with $15 placement
Highlights:
Firm commitments received for a new placement of approximately $15 million at $0.125 per share
Post completion of the placement, the Company will hold approximately $26.8 million in cash and cash equivalents (before Offer costs)
The capital raised allows Arovella to complete enrolment and report initial safety and efficacy data for the phase 1 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
The placement announced on 10 January 2025 has been withdrawn following a private investor defaulting on its binding subscription obligation
MELBOURNE, AUSTRALIA 26 February 2025: 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 $15 million (before costs) under a new placement of fully paid ordinary shares in the Company (Shares) to institutional and sophisticated investors (Placement, or the Offer). This new Placement is being conducted in place of the previous placement announced by the Company on 10 January 2025 (January Placement). The January Placement has been withdrawn by the Company, following the default by an Australian-based private investor to settle on its $15 million binding subscription obligation. Arovella is seeking remedy under the subscription agreement.
Under the Offer, for every three (3) new Shares issued under the Placement (New Shares), placement investors will receive one (1) attaching option exercisable at A$0.15 and expiring on 24 May 2027 (Attaching Options). The Company will apply to ASX for quotation of the Attaching Options.
Post the Offer, Arovella will have a pro-forma cash balance (before Offer costs) of approximately $25.9 million.
Funds raised under the Offer will allow Arovella to complete enrolment and report initial safety and efficacy data for the planned phase 1, first-in-human clinical trial for Arovella’s lead product, ALA-101. The phase 1 clinical trial is for patients with CD19-positive 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.
Arovella Managing Director and CEO Dr Michael Baker said: “Despite the challenges faced finalising the previous placement announced in January, it is excellent to have the continued faith of those that demonstrated their prior support. This is an excellent outcome and we are committed to our development plans to take ALA-101 into the clinic and assess its impact on patients with CD19+ blood cancers. The Company is well positioned, and the $15 million placement provides funding to generate preliminary safety and efficacy data in human clinical trials which is a pivotal driver of value. We are excited to continue with our development plans and 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 non-Hodgkin’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.