Oncology-focused biotechnology company Kazia Therapeutics (ASX: KZA) has established an ‘at-the-market’ (ATM) equity program, appointing US-based investment bank Oppenheimer & Co Inc as the sales agent.
Under the program, the drug developer may offer and sell via Oppenheimer up to US$35 million of its ordinary shares in the form of American depository shares (ADS), with each ADS representing 10 ordinary shares.
Kazia chairman Iain Ross has described ATM facilities as common financing instruments for Nasdaq-listed biotech companies.
“We consider it prudent capital management for Kazia to have access to such a facility so that it may respond most efficiently and most cost-effectively to emerging investor demand,” he said.
Use of funds to include research and clinical development efforts
Sydney-based Kazia is focused on the development of paxalisib to treat glioblastoma, the most common and aggressive form of brain cancer in adults.
The biotech company recently completed a phase two study and is preparing to present the results.
Earlier this month, Kazia revealed pre-clinical data that suggests its drug could also be used in the treatment of two forms of childhood brain cancer.
In today’s announcement, the company said it intends to use the net proceeds from the equity program for general corporate purposes which may include working capital and capex, expenses related to research, clinical development and commercial efforts, and general and administrative expenses.
Funds may also be used for potential acquisitions of, or investments in, companies, technologies, products or assets that complement Kazia’s business, although the company confirmed it has no current commitments with respect to this.
ATM program terms
Both timing and the amount of any sales of ADSs under the equity program are to be determined by Kazia and the company can also choose to terminate the facility at its sole discretion.
Sales made through the ATM may be made at market prices prevailing at the time of a sale or at prices related to prevailing market prices. As a result, actual sale prices may vary.
Kazia had filed a shelf registration statement including a base prospectus relating to the company’s securities, which was declared effective by the Securities Exchange Commission (SEC) in the US last September. Today, the company filed a prospectus supplement relating to the ATM program.