Radiopharm Theranostics (RAD: $0.043), a radiopharmaceutical therapeutic-diagnostic company focusing on a range of cancers, has announced an institutional placement of $70 million.
This is underpinned by the news that global radiopharmaceutical developer Lantheus Holdings, which sells the diagnostic Pylarify, that competes with Telix Pharmaceuticals' Illuccix, will initially invest $7.5 million as part of that placement, as a 'strategic investment'.
Radiopharm agreed to assign and sublicense two preclinical oncology assets to Lantheus. In return, Lantheus will pay a $3 million upfront fee. One of those targets TROP2 and the other LRRC15, both of which are combined with a radioisotope to destroy tumour cells.
Placement offer details
Radiopharm is raising $70 million via issuing 1.7 billion shares in two allotments, constituting 372% of Radiopharm's current shares on issue.
Tranche 1 involved a $23.9 million placement of 597 million shares, issued at $0.04, a premium of 17.6% to the prior trading day. Participants will receive one free option for every two new shares subscribed, at a strike price of $0.06 and an expiry date of 7 August 2026.
Tranche 2 will raise $46.1M with 368.8 million shares to be issued. Radiopharmaceutical developer Lantheus has agreed to invest $7.5 million at a price of $0.05 per share, which is a 47% premium to the June 19 closing price, with shares escrowed for 12 months. Lantheus will receive one option for four shares and bought the rights to purchase another $7.5M at $0.05 within 6 months.
Subject to shareholder approval, executive chairman Paul Hopper will also participate with $3 million under the offer.
It is a transformational deal for Radiopharm, with the commercial validation of the company's technologies that provides crucial and substantial funding to Radiopharm.
Bioshares recommendation: Speculative Buy Class B
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