Posted: 13 June 2024
Highlights:
- INOVIQ successfully completed a A$7 million placement to institutional and sophisticated
investors at A$0.50 per share. - INOVIQ Board and Management have participated in the placement.
- Funds raised will be used to advance commercialisation of EXO-NET research tools and
SubB2M diagnostics, progress development of pipeline diagnostics and expedite research of
high-value cancer therapeutics, enabling the Company to progress its pipeline and bring
new products to market. - Shareholders in Australia and New Zealand will be offered the opportunity to participate in
a share purchase plan to raise up to a further A$2 million with the capacity for
oversubscriptions of up to A$0.4 million at the Company’s discretion (subject to the
Company’s placement capacity) on similar terms as the placement. - INOVIQ’s expected proforma net cash balance will be approximately $12.7 million post
placement and SPP.
Melbourne, Australia, 12 June 2024: INOVIQ Limited (ASX: IIQ) (INOVIQ or the Company), a
company focused on developing next generation cancer diagnostics and therapeutics, has
completed a placement to institutional and sophisticated investors, to raise approximately A$7.0
million (before costs) under a placement of 14 million new fully paid ordinary shares in the
Company (Shares) at A$0.50 per Share (Placement), with one free quoted option for every two new
Shares issued under the Placement with an option exercise price of A$1.00 and an exercise period
of two years. The pricing of the Placement represents an 11.5% discount to the last traded market
price.
Over the next 12-months, INOVIQ expects to achieve the following milestones:
- Revenue growth from sales of EXO-NET exosome isolation tools (through our Promega
partnership and direct sales/services) - Exosome diagnostic biomarker validation for ovarian cancer
- Exosome diagnostic development agreement (collaborator / partner);
- Exosome therapeutic in vitro data for breast cancer
- Commercial partner for SubB2M test for monitoring breast cancer.
INOVIQ Chairman David Williams said: “Funds will be used to enhance the building blocks of our
diagnostics and therapeutics pipeline. The strong support from existing institutional and new
sophisticated investors highlights the potential of our proprietary exosome platform and recent
achievements across our research tools, diagnostics and therapeutics. Additionally, participation by
INOVIQ’s board and management highlights our strong belief in our multi-staged strategy.”
1. Capital raising overview
INOVIQ is pleased to announce the launch of a capital raising comprising a:
- Placement to raise approximately A$7 million worth of fully paid ordinary shares (Shares) to
institutions, sophisticated investors, and the INOVIQ board and management (Placement) - One free quoted option for every two new Shares issued to the institutional and
sophisticated investors under the Placement (exercisable at $A1.00 per option and expiring
24 months after the date of issue) (Placement Options); and - Share purchase plan to be made available to existing shareholders in Australia and New
Zealand to subscribe for up to A$2 million worth of Shares (SPP) with the capacity for
oversubscriptions of up to A$0.4 million at the Company’s discretion (subject to the
Company’s placement capacity) and one free quoted option (exercisable at $A1.00 per
option and expiring 24 months after the date of issue) for every two Shares issued under the
SPP (SPP Options),
the SPP Options and Placement Options, together the Options,
(collectively, the Offer or Capital Raising).
The offer price for the Shares under Placement and SPP will be A$0.50 per new Share (Offer Price),
representing a discount of:
- 11.5% to the last closing price on Thursday, 6 June 2024 of A$0.565 per Share; and
- 25.1% to the 10 day volume-weighted average price of A$0.668 per Share.
Each new Share issued under the Capital Raising will rank equally with existing Shares from the date
of issue.
2. Capital raising details
Placement
The Placement is expected to raise A$7 million through the issue of 14 million new Shares at the
Offer Price.
The directors and management of INOVIQ participated in the Placement. The issue of 500,000
Shares (and 250,000 attaching Placement Options) to directors (or associated entities) under
the Placement is subject to INOVIQ shareholder approval at a general meeting to be held in
or around July 2024.
The Placement will be made without a prospectus in reliance on section 708A(11) of the
Corporations Act 2011 (Cth) (Act). The offer and issue of the Placement Options will be made under
a prospectus lodged with ASX and ASIC on or about 19 June 2024 (Prospectus).
SPP
Following completion of the Placement, INOVIQ will conduct an offer of new Shares under a SPP to
existing shareholders with a registered address in Australia or New Zealand as at 7.00pm (Sydney
time) on Tuesday, 11 June 2024 (Eligible Shareholders).
The Company is seeking to raise up to a further A$2 million through the SPP with the capacity
for oversubscriptions of up to A$0.4 million at the Company’s discretion (subject to the Company’s
placement capacity) on similar terms as the Placement. INOVIQ reserves the right to decrease
this amount and to scale back applications under the SPP in its absolute discretion. In the event of
a scale back occurring, Eligible Shareholders may not receive the full number of Shares applied for
under the SPP and the difference in any application monies will be refunded (without interest)
following the issue of Shares under the SPP.
For every two Shares issued under the SPP, each investor is also entitled to one free quoted option
exercisable at A$1.00 and expiring 24 months after the date of issue.
Full details of the SPP and SPP Options will be set out in the Prospectus which is expected to be
lodged with ASIC and released to the ASX on or about Wednesday, 19 June 2024. The Prospectus
will be dispatched to Eligible Shareholders on or about Wednesday, 19 June 2024. The SPP is
scheduled to open on Wednesday, 19 June 2024 and close on Tuesday, 2 July 2024.
3. Use of funds
The funds raised in the Capital Raising will be primarily used to advance the commercialisation of
EXO-NET research tools and SubB2M diagnostics, progress development of pipeline diagnostics and
expedite research of high-value cancer therapeutics towards key development and commercial
milestones.
Purpose A$ million
Sales, marketing and business development: 1.4
SubB2M and EXO-NET products
Research and development: 6.4
Research tools, diagnostics and therapeutics
Administrative and corporate costs 0.4
Offer costs 0.8
Total funds raised 9.0
4. Indicative timetable
The timetable below is indicative only and subject to change. The Company reserves the right to
alter the dates below in its full discretion without prior notice, subject to the ASX Listing Rules and
the Corporations Act. The commencement of trading of new Shares and Options are subject to
confirmation from ASX.
Event Date
Trading halt Friday, 7 June 2024
Record date for SPP 7pm (Sydney time) on Tuesday, 11 June 2024
Announcement of completion of Placement Wednesday, 12 June 2024
and recommencement of trading
Settlement of new Shares issued under the Wednesday, 19 June 2024
Placement
Lodgement of Prospectus
Dispatch Prospectus
SPP and Options offer opening date
Allotment and normal trading of new Shares Thursday, 20 June 2024
under the Placement
SPP and Options offer closing date (5:00pm, Sydney time) Tuesday, 2 July 2024
Announcement of results of SPP and Options Friday, 5 July 2024
offer
Settlement of new Shares under the SPP Monday, 8 July 2024
Allotment of new Shares under the SPP Tuesday, 9 July 2024
and Options
Holding statements dispatched Wednesday, 10 July 2024
5. Further information
Further details are contained in INOVIQ’s investor presentation released to the ASX today (Investor
Presentation). This announcement, the Prospectus and the Investor Presentation should be read
together. The Investor Presentation (and Prospectus will) contain important information including
key risks of INOVIQ’s business and foreign selling restrictions.
If you have any questions in relation to the Offer, please contact the Offer Information Line on 1300
850 505 (within Australia) or +61 3 9415 5000 (outside of Australia) between 8.30am and 5.00pm
Monday to Friday. Please consult with your broker, solicitor, accountant, financial adviser or other
professional advisers if you have any questions in relation to this announcement or the Offer.
Authorised for release by the INOVIQ Limited, Board of Directors.
