REG - Avacta Group PLC - Issue of Equity and Total Voting Rights

AvactaAnnouncement

22/04/2024 12:15

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RNS Number : 5405L  Avacta Group PLC  22 April 2024

 

 

 

 

22 April 2024

 

Avacta Group plc

 

("Avacta" or the "Group" or the "Company")

 

Issue of Equity and Total Voting Rights

 

 

Avacta Group plc (AIM: AVCT), a life sciences company developing innovative,
targeted oncology drugs and powerful diagnostics today announces it has issued
and allotted a total of 7,529,825 new ordinary shares of 10 pence each in the
Company ("New Ordinary Shares"). The New Ordinary Shares are being issued in
settlement of the quarterly principal of £2.55 million and interest repayment
of £0.62 million in respect of the Company's unsecured convertible bonds (the
"Convertible Bonds"), as detailed in Avacta's announcement on 18 October 2022.

 

The Board carefully considered the difficult balance between further dilution
and the Group's cash resources to deliver key value adding milestones from the
upcoming AVA6000 efficacy studies. On this occasion the Board has decided to
settle the quarterly repayment in shares but will continue to review this on a
quarterly basis and, if it considers that conditions allow, the repayment will
be settled in cash.

 

After settlement of the quarterly repayment, the principal remaining under the
Convertible Bonds will be reduced by £2.55 million to £35.70 million.

 

Under the terms and conditions of the Convertible Bonds, there is a reset of
the conversion price on the date falling 18 months after their date of issue
(i.e. on 20 April 2024, the "Reset Date") should the average Avacta share
price over the 15-dealing-day period preceding the Reset Date((1)) (the
"15-Day Reset Average Market Price") be below the conversion price in effect
on the Reset Date((2)). In which case, the conversion price resets to the
greater of (i) such 15-Day Reset Average Market Price and (ii) the reset price
floor in effect on the Reset Date((3)). The 15-Day Reset Average Market Price
is 50.83 pence and, as such, with effect from the Reset Date of 20 April 2024,
the conversion price was reset to 88.72 pence((4)), subject as provided below.

If, during the 9-month period commencing on the Reset Date (i.e. during the
period from 20 April 2024 to 20 January 2025, the "Reset Clawback Period"),
the volume-weighted average price ("VWAP") of the Company's Ordinary Shares on
each of at least 20 dealing days in any period of 30 consecutive dealing days
is greater than 130% of the pre-reset conversion price((5)) (the "Reference
Conversion Price"), then the conversion price will be restored at such time to
be equal to such Reference Conversion Price((5)), thereby reversing the effect
of the reset made on 20 April 2024.

Application has been made to AIM for the admission to trading of the 7,529,825
New Ordinary Shares resulting from the conversion, which is expected to occur
at or around 8.00 am on 23 April 2024 ("Admission"). The New Ordinary Shares
will rank pari passu with the existing Ordinary Shares of the Company.

 

Following Admission, the Company's enlarged issued share capital will be
359,042,104. This figure may be used by shareholders in the Company as the
denominator for the calculations by which they will determine if they are
required to notify their interest in, or a change to their interest in, the
share capital of the Company under the Financial Conduct Authority's
Disclosure Guidance and Transparency Rules.

 

 

 

((1)) being calculated as the arithmetic average of the daily VWAPs of the
Ordinary Shares during such 15-dealing-day period as aforesaid

((2)) being 110.91 pence since the adjustment performed in accordance with the
customary anti-dilution provisions contained in the terms and conditions of
the Convertible Bonds following the Company's fundraise announced on 28
February 2024 (the conversion price was initially set at 118.75 pence at the
time of issue of the Convertible Bonds)

((3)) being 88.72 pence since the adjustment referred to in note (1) above
(the reset price floor was initially set at 95 pence at the time of issue of
the Convertible Bonds)

((4)) from 110.91 pence immediately prior to the Reset Date

((5)) being 110.91 pence, as may be adjusted during the Reset Clawback Period
in accordance with the customary anti-dilution provisions contained in the
terms and conditions of the Convertible Bonds

 

 

-Ends-

 

 

For further information from Avacta Group plc, please contact:

 

 Avacta Group plc                                                           Tel: +44 (0) 1904 21 7070

 Alastair Smith, Chief Executive Officer                                    www.avacta.com (http://www.avacta.com)

 Tony Gardiner, Chief Financial Officer

 Michael Vinegrad, Group Communications Director

 Stifel Nicolaus Europe Limited (Nomad and Joint Corporate Broker)          Tel: +44 (0) 207 710 7600

 Nicholas Moore / Nick Adams / Samira Essebiyea / Nick Harland / Ben Good   www.stifel.com (http://www.stifel.com/)

 Peel Hunt (Joint Corporate Broker)                                         Tel: +44 (0) 207 418 8900

 James Steel / Chris Golden / Patrick Birkholm                              www.peelhunt.com (http://www.peelhunt.com)

 ICR Consilium (Media and IR)                                               avacta@consilium-comms.com (mailto:avacta@consilium-comms.com)

 Mary-Jane Elliott / Jessica Hodgson / Sukaina Virji

 

About Avacta Group plc - https://www.avacta.com (https://www.avacta.com/)

 

Avacta Group is a UK-based life sciences company focused on improving
healthcare outcomes through targeted cancer treatments and diagnostics.

Avacta has two divisions focused on therapeutics and diagnostics.

Avacta Therapeutics: a clinical stage oncology biotech division harnessing
proprietary therapeutic platforms to develop novel, highly targeted cancer
drugs.

Avacta Diagnostics: focused on supporting healthcare professionals and
broadening access to diagnostics.

Avacta has two proprietary platforms, pre|CISION™ and Affimer®.

The pre|CISION™ platform is a highly specific substrate for fibroblast
activation protein (FAP) which is upregulated in most solid tumours compared
with healthy tissues. The pre|CISION™ platform harnesses this tumour
specific protease to activate pre|CISION™ peptide drug conjugates and
pre|CISION™ antibody/Affimer® drug conjugates in the tumour
microenvironment, reducing systemic exposure and toxicity, allowing dosing to
be optimised to deliver the best outcomes for patients.

The lead pre|CISION™ programme AVA6000, a peptide drug conjugate form of
doxorubicin, is in Phase 1 studies. It has shown a dramatic improvement in
safety and tolerability in clinical trials to date compared with standard
doxorubicin and preliminary signs of clinical activity in multiple patients.

 

 

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(https://avacta.com/investors/investor-news-email-alerts/)

 

 

 

 

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