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LONDON - Avacta Group plc (AIM:AVCT) has secured £16 million in gross proceeds through an oversubscribed placing of 25.4 million new ordinary shares at 63 pence per share, the clinical stage biopharmaceutical company announced today.
The fundraising, conducted with Zeus Capital Limited as sole bookrunner, will provide additional working capital to advance the company’s research and development programs into the second half of 2026, according to a press release statement.
The proceeds will support the progression of Avacta’s faridoxorubicin Phase 1b trial and the planned initiation of its FAP-EXd Phase 1a trial. The company’s FAP-EXd asset is expected to enter clinical development in the first quarter of 2026.
The completion of this equity raise satisfies the remaining conditions to amendments of Avacta’s Convertible Bond terms, which were announced on August 29. As a result, quarterly repayments and interest on the Convertible Bond due for January and April 2026 will be deferred until October 20, 2027.
Additionally, the conversion price of the Convertible Bond will be reset to 75.0 pence from the previous 88.72 pence.
The fundraising extends Avacta’s cash runway into the second half of 2026, allowing the company to maintain full ownership of its drug development programs based on its pre|CISION oncology delivery platform.
Avacta recently presented Phase 1a data for faridoxorubicin at the European Society for Medical Oncology meeting, reporting a disease control rate of 91% in treated patients.
The company is also advancing its dual payload platform technology, which focuses on peptide drug conjugates for targeted drug delivery in cancer treatment.
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