Avacta Group plc has announced the successful placement of 51,269,609 Placing Shares at the Offer Price of 50 pence per Placing Share with new and existing investors, including high-quality institutions and a European specialist healthcare fund. The Board has decided to increase the size of the Placing from approximately £20 million to £25.7 million due to strong demand. Additionally, certain Directors of the Company have subscribed for 130,000 Direct Subscription Shares at the Offer Price.

The Placing Shares and Direct Subscription Shares represent approximately 17.8% of the issued share capital of the Company immediately prior to the announcement of the Placing. Stifel Nicolaus Europe Limited, Peel Hunt LLP, and Turner Pope Investments (TPI) Limited acted as joint bookrunners in respect of the Placing, while Beech Hill Securities, Inc. acted as the US placing agent.

The New Shares, when issued, will be credited as fully paid and will rank pari passu in all respects with the Company's then existing Shares. The Company is also undertaking a REX Offer, expected to close for applications at or around 11.00 a.m. on 4 March 2024, with the results expected to be announced on or around 4 March 2024.

27,390,485 Firm Placing Shares and 130,000 Direct Subscription Shares will be issued and allotted under the Company's existing share capital authorities. 23,879,124 Conditional Placing Shares and any REX Offer Shares that are subscribed for will be issued and allotted conditional on shareholder approval at the General Meeting at 11.00 a.m. on 18 March 2024.

Alastair Smith, Chief Executive Officer of Avacta Group plc, expressed his satisfaction with the financing, stating, "Under very challenging market conditions we have raised financing that allows Avacta to progress at full speed its lead pre|CISION™ targeted chemotherapy, AVA6000, into the expansion and Phase 2 efficacy studies."

Certain Directors of the Company, including Eliot Forster (Chairman), Alastair Smith (CEO), Christina Coughlin (Head of Research & Development), and Shaun Chilton (Non-Executive Director), have conditionally agreed to subscribe for an aggregate of 130,000 Direct Subscription Shares in the Direct Subscription at the Offer Price.

The Company expects to post the circular, including the notice of General Meeting later today or tomorrow. Application has been made to the London Stock Exchange for admission of the New Shares, with the admission of the Firm Placing Shares and Direct Subscription Shares expected to become effective at or around 8.00 a.m. on 4 March 2024.