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SYDNEY - Kazia Therapeutics Limited (NASDAQ: KZIA), an Australian oncology-focused drug development company with a current market capitalization of $7.36 million, has finalized a deal for a registered direct offering of American Depositary Shares (ADSs) expected to raise approximately $2 million. The stock has declined over 74% in the past six months, though InvestingPro analysis suggests the shares are currently undervalued. The closing of the offering is anticipated to occur around January 13, 2025.
In this transaction, Kazia will issue up to 1,333,333 ADSs at a price of $1.50 per ADS, with the stock currently trading at $1.61. Each ADS represents 100 ordinary shares of the company. Concurrently, Kazia has agreed to issue unregistered warrants for the purchase of an equivalent number of ADSs. These warrants will be exercisable immediately upon issuance at the same price and will expire five and a half years from the date of issuance. InvestingPro subscribers can access 12 additional investment tips and comprehensive financial metrics for KZIA.
Maxim Group LLC is the exclusive placement agent for the offering. The proceeds are intended for use in general corporate purposes, which may include working capital and funding for research, clinical development, and commercial efforts, as well as general and administrative expenses.
The securities, excluding the warrants and the ADSs underlying the warrants, are being offered through a "shelf" registration statement previously filed with and declared effective by the Securities and Exchange Commission (SEC). The offering is made only by means of a prospectus supplement that is part of the registration statement.
The unregistered warrants are offered in a private placement under the Securities Act of 1933, and thus, may not be reoffered or resold in the U.S. without registration or an exemption from registration requirements.
Kazia's leading program is paxalisib, a brain-penetrant inhibitor aimed at treating various forms of brain cancer. While the company reported revenue of $1.65 million in the last twelve months and maintains more cash than debt on its balance sheet, InvestingPro data indicates an overall WEAK Financial Health Score. Paxalisib has been the subject of numerous clinical trials and has received Orphan Drug Designation and Fast Track Designation by the FDA for certain uses.
This announcement is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy any securities.
In other recent news, Kazia Therapeutics has been making significant progress in oncology drug development. The company recently concluded discussions with the U.S. Food and Drug Administration (FDA) on the development path for its brain cancer drug, paxalisib. The FDA provided guidance for the design of a pivotal phase 3 study, which is essential for standard approval.
Paxalisib is being explored for several indications, including pediatric brain cancer, brain metastases, and glioblastoma multiforme. The GBM AGILE Phase II/III trial showed significant improvement in overall survival for patients treated with paxalisib. The company also reported promising results from a Phase I study of paxalisib combined with radiation therapy.
In addition, Kazia Therapeutics is making progress in its EVT801 Phase 1 clinical trial for cancer treatment. The company secured an exclusive license for cancer therapy from QIMR Berghofer Medical (TASE:PMCN) Research Institute, further expanding its portfolio. H.C. Wainwright maintains a Buy rating on Kazia Therapeutics, emphasizing the potential of the company's drug candidates.
These developments are part of Kazia Therapeutics' recent endeavors in the field of cancer treatment. The company is actively considering its next steps for NDU glioblastoma and plans to outline its strategy by the end of January 2025. Despite the company's current financial health score showing as WEAK on InvestingPro, analysts project 7.91% revenue growth for FY2025.
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