LONDON and PHILADELPHIA – 20 October 2025 – Avacta (AIM: AVCT), a clinical stage biopharmaceutical company developing pre|CISION®, a unique oncology delivery platform, is pleased to announce that it has raised gross proceeds of approximately £16 million from institutional and high net worth investors by way of a conditional oversubscribed placing of 25,396,806 new ordinary shares of 10 pence each in the Company (the “Placing Shares”) at a price of 63 pence per share (the “Issue Price”), with Zeus Capital Limited acting as sole bookrunner (the “Placing”).
The net proceeds of the Placing provide additional working capital to progress the Company’s R&D programs into 2H 2026 including progressing the faridoxorubicin Phase 1b trial and planned initiation of the FAP-EXd Phase Ia trial. Completion of the Placing will satisfy the remaining conditions to the Amendments to the Convertible Bond terms, as announced on 29 August 2025 (as defined in RNS No. 1385X) (the “Bond Amendments RNS”). The Company therefore confirms that the quarterly repayment and interest of the Convertible Bond (as defined in the Bond Amendments RNS) due today will be paid in cash.
The following Amendments to the Convertible Bond will take effect upon completion of the Placing (with capitalised terms having the definitions given in the Bond Amendments RNS):
- Quarterly Convertible Bond repayments and interest in respect of 20 January 2026 and 20 April 2026 payment dates will be deferred until 20 October 2027 (together, the “Deferred Repayments”).
- Upon the earlier of (i) the date on which the Company publishes the data readouts of its Phase 1b trials of faridoxorubicin (FAP-Dox, AVA6000) in triple negative breast cancer and (ii) 30 June 2026, the Bondholder will have the right to accelerate the satisfaction (in cash or shares) of one of both the Deferred Repayments and in addition, from 1 October 2026, at any time accelerate the satisfaction of the quarterly repayments on the Convertible Bond, subject to a maximum of one acceleration per quarter.
- The conversion price of the Convertible Bond is to be set at 75.0 pence having previously been set at 88.72 pence under the terms of the reset conversion price as announced on 22 April 2024. The relevant share settlement price in relation to the quarterly repayments and interest remains calculatable based on the then prevailing VWAP.
The Company will continue to progress faridoxorubicin (AVA6000) into 2026, and expects to progress FAP-EXd (AVA6103) into a Phase 1 trial (subject to receipt of an IND from the US Food & Drug Administration) and advance the development of the Company’s Dual Payload Technology (AVA6207) with the net proceeds of the Placing extending the Company’s cash runway into H2 2026.
Christina Coughlin, CEO of Avacta commented:
“The Board’s decision to raise funds enables Avacta to retain 100% ownership of our highly promising programs based on our proprietary pre|CISION® technology and provide us with a cash runway into H2 2026. Completion of the raise also enables us to meet the terms of the Heights convertible loan note deferment. We believe this decision to be in the long-term interest of shareholders.
“We are continuing to make good progress across all our programs. Our faridoxorubicin trial is gaining momentum, with Phase 1a data presented this weekend at the European Society for Medical Oncology (ESMO) meeting demonstrating a disease control rate in patients treated of 91%.
“Meanwhile, the FAP-EXd (AVA6103) asset is advancing towards clinical development. Our recently revealed dual payload platform is also pioneering how peptide drug conjugates (PDCs) can be utilized for dual payload peptide drug delivery.
“FAP-EXd is on track to enter clinical development in Q1 2026 and is generating interest from a number of potential partners. Importantly, the funds raised allow Avacta to maintain control of this promising asset, allowing us to maximize potential value, while supporting our broader pipeline of programs.
“Avacta continues to focus on building its IP estate, based on our unique pre|CISION® technology, as we seek to seek to maximize, in the long term, value for the benefit of patients and shareholders.”