Sydney – September 04, 2026 -- Kazia Therapeutics Limited (NASDAQ: KZIA) has closed an oversubscribed, tranched public offering that generated approximately $40 million in upfront gross proceeds, with total potential proceeds reaching approximately $120 million if milestone-linked warrants are fully exercised.
Offering priced above market with milestone-triggered warrant premiums
The combined offering price was set at $15.50 per American Depositary Share (ADS), with both warrant tranches priced at premiums to that level. Series A Warrants carry an exercise price of $17.825 per ADS, a 15% premium, tied to Kazia's Stage IV triple-negative breast cancer (TNBC) data readout expected in the second half of 2027. Series B Warrants carry an exercise price of $19.375 per ADS, a 25% premium, tied to the company's HR+/HER2- breast cancer data readout expected in the first half of 2028.
Structure combines ADSs, pre-funded warrants and dual warrant series
The offering comprised 2,580,000 ADSs, each representing 500 ordinary shares, or pre-funded warrants in lieu of ADSs for certain investors. It also included Series A Warrants to purchase up to 2,243,478 ADSs and Series B Warrants to purchase up to 2,064,000 ADSs, both exercisable immediately. Series A Warrants expire 30 days after the TNBC readout or on the five-year anniversary of issuance, whichever comes first; Series B Warrants follow the same structure tied to the HR+/HER2- readout.
Institutional roster includes Marshall Wace, Columbia Threadneedle
New and existing institutional investors participating in the offering included ADAR1 Capital Management, Columbia Threadneedle Investments, Lynx1 Capital Management, Marshall Wace, and Pointillist Family Office. Leerink Partners and Guggenheim Securities served as joint bookrunning managers, with BTIG and Needham & Company as lead managers and Laidlaw & Company (UK) Ltd. as co-manager.
Proceeds earmarked for paxalisib trials across three cancer indications
Kazia intends to direct net proceeds primarily toward clinical development of paxalisib, its lead PI3K/Akt/mTOR pathway inhibitor, across ongoing and planned studies in triple-negative breast cancer, HR+/HER2- breast cancer, and pMMR colorectal cancer. Remaining funds will support working capital and general corporate purposes.
Kazia will host a corporate update conference call on September 1, 2026, at 8:00am ET, accessible via webcast or by dialing 1-877-407-4018 in the U.S. or 1-201-689-8471 internationally, using Conference ID 13762519.