Avacta Group PLC, a life sciences company, has announced a proposed capital raise to progress its Therapeutics Division pipeline. The proposed fundraise includes a firm placing of new shares and a direct subscription by certain directors, raising gross proceeds of up to £13.8 million. Additionally, conditional upon shareholder approval, there will be a non-pre-emptive placing of new shares and an offer of new shares to retail investors, raising gross proceeds of approximately £6.2 million and up to £6.8 million, respectively.

The fundraise aims to support the initiation and progression of dose expansion and Phase 2 efficacy studies for AVA6000, the company's lead pre|CISION™ drug, which has shown promising preliminary indications of clinical activity. The majority of the net proceeds will be used for this purpose, as well as for general working capital for the group until the end of 2025.

The company plans to use the proceeds in excess of £20 million, including any raised through the REX Offer, for completing investigational new drug enabling studies, submitting an IND/clinical trial application, and initiating a Phase 1a dose escalation study for AVA3996, as well as progressing the current pre|CISION™ and Affimer® pre-clinical pipelines.

Avacta Group PLC also aims to explore all available pathways to appropriately finance its clinical therapeutics programs over the longer term, including non-dilutive funding through business development, attracting global specialist biotech investors, and potentially a NASDAQ dual-listing. The company is actively exploring routes to divest its Diagnostics division in a manner that maximizes value for shareholders.

The company's unaudited cash position and principal remaining under the convertible bond amounts stand at £16.6 million and £40.8 million, respectively, as of 1 January 2024. Avacta has used part of the previously raised funds to complete the acquisitions of Launch Diagnostics and Coris Bioconcept SRL, as the first steps in building an integrated in-vitro diagnostics business. The expanded Diagnostics Division also leverages Avacta's proprietary Affimer® platform to differentiate its immunodiagnostic products in a competitive market.

The fundraise is a strategic move by Avacta to advance its oncology drug development pipeline and strengthen its financial position to support the company's growth and innovation in the life sciences sector.