21 December 2021 – Race Oncology Limited (“Race”) is pleased to announce that its Share Purchase Plan (SPP) has closed heavily oversubscribed with $43.9m received in applications from 2,340 shareholders. In line with the terms of the SPP, $29.7m will be accepted, with funds to be applied to Race’s “full case” funding scenario, as set out in Race’s 2021 Annual General Meeting (ASX announcement: 23 November 2021).

“The Race team has been humbled by the extraordinary show of shareholder support for our Share Purchase Plan and we sincerely thank all those who participated. The number of applications reflects enthusiasm for the significant potential of our lead drug Zantrene, and this enables us to implement our planned clinical and drug development plans across the three-pillar program. We move into 2022 in an exceptional position, with many critical, reportable milestones ahead of us.”

Race’s Managing Director and CEO, Mr Phil Lynch

“I would like to personally thank all our shareholders for their generous support of our plans for Zantrene. It is extremely humbling to have so many of our shareholders willing to join and support us on the exciting journey to bring Zantrene back to patients in need.”

Race’s Chief Scientific Officer and Executive Director, Dr Daniel Tillett

Use of funds

Funds raised under the SPP will be used as follows: Phase 1b/2 FTO solid tumour clinical trial ($8.0 million); cardio-protection Phase 2b clinical trial in breast cancer patients ($7.5 million); Phase 2 EMD AML/MDS clinical trial in Europe ($9.2 million); improved formulations of Zantrene^® ($3.2 million); preclinical cardio-protection studies ($1.0 million); and the development of new molecules ($0.8 million).

About the SPP

Race offered a non-underwritten SPP to eligible existing shareholders (in Australia and New Zealand) at the $3.00 issue price. The SPP closed on Friday 17 December 2021 with subscriptions received for $43,953,272.63.

After scale-back, the amount raised under the SPP was $29,700,000, comprising the issue of 9.9 million new ordinary fully paid shares at $3.00 per share, representing approximately 6.6% of the Company’s issued capital as at 21 December 2021.

New shares issued under the SPP will be allocated today and holding statements despatched, with trading expected to begin on the Australian Securities Exchange on the 22 December 2021.

Allocation policy

When determining the amount by which to scale back an Application, Race has taken into account a number of factors, including the size of an applicant’s shareholding, the extent to which Eligible Shareholders have sold or bought additional Shares after the Record Date and the date an application was made. Scale back for Shares held by Custodians was applied at the level of the underlying beneficiary.

Where shareholders were scaled back, they will receive the number of Shares determined by the Company in its absolute discretion, rounded up to the nearest whole Share. If Race rejects or scales-back an application or purported application, the Company will promptly return to the Eligible Shareholder any relevant application monies, without interest.

Eligible Directors, Mr Phillip Lynch, Ms Mary Harney and Dr Daniel Tillett all applied for their full entitlements. Dr John Cullity was ineligible due to being resident in the USA.