Kazia Therapeutics raises $2M in private placement of equity securities.

Kazia Therapeutics has entered into a securities purchase agreement for a private placement of equity securities with institutional investors. The company will sell approximately $2 million of ordinary shares and prefunded warrants at a 5% premium to the closing price of its ADSs on July 31, 2025. The transaction is expected to close on August 4, 2025, subject to customary conditions. The net proceeds will be approximately $2 million, after deducting estimated offering expenses.

Sydney, Aug. 1, 2025 — Kazia Therapeutics Limited (NASDAQ: KZIA), an oncology-focused drug development company, has announced the completion of a private placement of equity securities with institutional investors. The company has entered into a securities purchase agreement to sell approximately $2 million in ordinary shares and prefunded warrants at a 5% premium to the closing price of its American Depositary Shares (ADSs) on July 31, 2025. The transaction is expected to close on August 4, 2025, subject to customary closing conditions.

The net proceeds from this offering, estimated to be approximately $2 million after deducting offering expenses, will be used to support the continued clinical development of Kazia's lead programs, including paxalisib and EVT801. Paxalisib is a brain-penetrant dual PI3K/mTOR inhibitor currently in clinical trials for both brain cancer and advanced breast cancer. EVT801 is a selective VEGFR3 inhibitor in Phase 1 trials for advanced solid tumors. The funds will also be used for general corporate purposes.

Dr. John Friend, CEO of Kazia Therapeutics, stated, "This transaction provides Kazia with additional capital to advance our clinical-stage assets through key near-term catalysts, most notably additional data from our ongoing advanced breast cancer trial. We are grateful for the continued support of our investors and look forward to delivering updates on upcoming milestones."

The securities sold in this private placement (PIPE) are not registered under the Securities Act of 1933, as amended, or applicable state securities laws, and may not be offered or sold in the United States absent an effective registration statement or an applicable exemption from registration requirements. Kazia has agreed to file a shelf registration statement with the U.S. Securities and Exchange Commission (SEC) within 60 days of the closing to register the resale of ADSs representing the ordinary shares and those underlying the pre-funded warrants.

This private placement represents a strategic capital raise for Kazia Therapeutics, with several noteworthy aspects. The 5% premium to market price suggests investor confidence in Kazia's clinical programs. The structure as a straightforward equity investment without warrant coverage minimizes potential future dilution compared to more complex financing instruments typically seen in the sector. The modest size of the transaction indicates it is likely a bridge financing rather than a comprehensive solution to long-term capital needs, as clinical-stage oncology programs typically require substantially more capital to reach completion.

References:
[1] https://www.prnewswire.com/news-releases/kazia-therapeutics-announces-2-million-private-placement-at-premium-302519397.html
[2] https://www.stocktitan.net/news/KZIA/kazia-therapeutics-announces-2-million-private-placement-at-premium-x3iyd9nfw2bu.html
[3] https://www.marketscreener.com/news/kazia-therapeutics-announces-2-million-private-placement-at-premium-to-market-ce7c5fd2d08eff23