LONDON: British biopharmaceutical company Avacta Group Plc (AVCT.L) said on Monday it has raised approximately £16 million ($20.5 million) in an oversubscribed share placing, providing it with working capital to progress its cancer drug development programs into the second half of 2026.
The company, which is developing targeted cancer therapies using its pre|CISION platform, placed 25.4 million new ordinary shares at a price of 63 pence each. Zeus Capital Limited acted as the sole bookrunner for the placing.
Avacta said the net proceeds will be used to advance its key research and development programs. This includes progressing the Phase 1b trial of its lead drug, faridoxorubicin (AVA6000), and the planned initiation of a Phase 1a trial for FAP-EXd (AVA6103), subject to regulatory approval.
The successful completion of the fundraise also triggers amendments to the terms of an existing convertible bond, as previously announced. The company confirmed it will make a scheduled quarterly bond repayment and interest payment due on Monday in cash.
As part of the amended terms, subsequent quarterly repayments due in January and April 2026 will be deferred until October 2027. The conversion price of the bond has also been reset to 75.0 pence from 88.72 pence.
“The Board’s decision to raise funds enables Avacta to retain 100% ownership of our highly promising programs,” said Chief Executive Officer Christina Coughlin. “We believe this decision to be in the long-term interest of shareholders.”
Coughlin highlighted positive progress in the company’s pipeline, noting that Phase 1a data for faridoxorubicin presented at the European Society for Medical Oncology meeting showed a disease control rate of 91% in treated patients.
The CEO added that the FAP-EXd asset remains on track to enter clinical development in the first quarter of 2026 and is attracting interest from potential partners.
Avacta’s pre|CISION technology is designed to activate cancer drugs specifically within tumours, aiming to minimize damage to healthy tissue and reduce side effects.
($1 = 0.7800 pounds)