Arovella Therapeutics (ASX:ALA) has announced that it has received firm commitments from institutional and sophisticated investors to raise approximately $15 million under a new placement.
The company is developing an invariant Natural Killer T (iNKT) cell therapy platform.
It said the new placement is being conducted in place of the previous placement announced on 10 January 2025. The company has withdrawn the January placement following the default by an Australian-based private investor to settle on its $15 million binding subscription obligation.
"Arovella is seeking a remedy under the subscription agreement, " the company said, adding that after the new placement, it will have a pro-forma cash balance of approximately $25.9 million.
The funds raised will support the company in completing enrollment and reporting initial safety and efficacy data for the planned phase 1, first-in-human clinical trial for its lead product, ALA-101. The phase 1 clinical trial is for patients with CD19-positive non-Hodgkin's lymphoma and leukemia. Arovella said the funds will also strengthen its iNKT cell therapy pipeline, advance its solid tumour products, and for general working capital purposes.
Managing director and CEO Dr Michael Baker said, "Despite the challenges faced finalising the previous placement announced in January, it is excellent to have the continued faith of those that demonstrated their prior support. This is an excellent outcome and we are committed to our development plans to take ALA-101 into the clinic and assess its impact on patients with CD19+ blood cancers.
"The company is well positioned, and the $15 million placement provides funding to generate preliminary safety and efficacy data in human clinical trials which is a pivotal driver of value. We are excited to continue with our development plans and look forward to building on our success and creating value for our shareholders."
