Kazia Therapeutics Limited Announces Pricing of Up to $120 Million Public Offering
Rhea-AI Summary
Kazia Therapeutics (NASDAQ: KZIA) has priced a tranched registered public offering of 2,580,000 American Depositary Shares (ADSs), each representing 500 ordinary shares, or pre-funded warrants in lieu of ADSs, together with Series A and Series B warrants.
The combined public offering price is $15.50 per ADS with accompanying warrants and $15.4999 per pre-funded warrant with accompanying warrants, for expected gross proceeds of approximately $40 million before fees. Series A Warrants cover up to 2,243,478 ADSs at an exercise price of $17.825, expiring 30 days after the Stage IV TNBC data readout (expected 2H 2027) or five years from issuance. Series B Warrants cover up to 2,064,000 ADSs at an exercise price of $19.375, expiring 30 days after the HR+/HER2- data readout (expected 1H 2028) or five years from issuance. If fully exercised, these warrants would provide additional gross proceeds of about $80 million. The offering, sold entirely by Kazia, is expected to close on or about August 31, 2026, and net proceeds are intended mainly to fund clinical development of paxalisib and for general corporate purposes.
Positive
- Gross proceeds of approximately $40 million from ADS and pre-funded warrant offering before fees
- Up to $80 million in additional potential gross proceeds if all Series A and B warrants are exercised
- Net proceeds earmarked primarily for paxalisib clinical development in TNBC, HR+/HER2- and other oncology indications
Negative
- Issuance of 2,580,000 new ADSs plus pre-funded and accompanying warrants increases the company’s outstanding equity and potential dilution
- Series A and Series B warrants for up to 2,243,478 and 2,064,000 ADSs respectively add significant future exercisable securities
News Explained
Kazia has priced—but not yet closed—the offering; if the 2,580,000 ADSs are issued, they increase total shares and reduce existing holders’ percentage ownership absent offsetting changes, with warrant exercise able to add further ADSs.
Market reaction after $40 million public offering: KZIA -11.54%
Following this news, KZIA has declined 11.54%, reflecting a significant negative market reaction. The stock is currently trading at $14.95.
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Key Figures
Previous Offering Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jan 14 | Registered direct offering | Negative | +1.3% | Offering closed with $2.0 million raised through ADS and warrant issuance |
| Jan 10 | Registered direct offering | Negative | -6.5% | Company announced $2.0 million ADS offering with concurrent warrant placement |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
The two tag-specific offering events produced mixed reactions, with one positive and one negative 24-hour move.
Key Terms
pre-funded warrants financial
form f-3 regulatory
triple-negative breast cancer medical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Leerink Partners and Guggenheim Securities are acting as joint bookrunning managers for the Offering. BTIG and Needham & Company are acting as lead managers for the Offering. Laidlaw & Company (
The Offering is expected to close on or about August 31, 2026, subject to satisfaction of customary closing conditions.
Kazia intends to use the net proceeds from the Offering primarily to fund clinical development of paxalisib, including ongoing and planned studies in triple-negative breast cancer and HR+/HER2- breast cancer and other oncology indications, and for working capital and general corporate purposes.
The ADSs and warrants are being offered pursuant to a registration statement on Form F-3 (File No. 333-294392), which was previously filed with and subsequently declared effective by the Securities and Exchange Commission (the "SEC"). The Offering is being made only by means of a prospectus supplement and accompanying prospectus that form a part of the effective registration statement. A final prospectus supplement and the accompanying base prospectus relating to the Offering will be filed with the SEC and will be available on the SEC's website at www.sec.gov. Additionally, electronic copies of the preliminary prospectus supplement and the accompanying base prospectus may be obtained from Leerink Partners LLC, Attention: Syndicate Department, 53 State Street, 40th Floor,
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in the Offering, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
About Kazia Therapeutics
Kazia Therapeutics Limited (NASDAQ: KZIA) is an oncology-focused drug development company, based in Sydney, Australia. The Company's lead asset, paxalisib, is an investigational brain penetrant inhibitor of the PI3K/Akt/mTOR pathway, which is being developed to treat multiple forms of cancer. Licensed from Genentech in late 2016, paxalisib is or has been the subject of over 15 clinical trials. A completed Phase 2/3 study in glioblastoma (GBM AGILE) was reported in 2024, and discussions are ongoing for designing and executing a pivotal registrational study in pursuit of a standard approval.
Other clinical trials involving paxalisib are ongoing in advanced breast cancer, brain metastases, diffuse midline gliomas, and primary central nervous system lymphoma, with several of these trials having reported encouraging interim data. Paxalisib was granted Orphan Drug Designation for glioblastoma by the U.S. Food and Drug Administration (FDA) in February 2018, and Fast Track Designation (FTD) for glioblastoma in August 2020. Paxalisib was also granted FTD in July 2023 for the treatment of solid tumor brain metastases harboring PI3K pathway mutations in combination with radiation therapy.
Additionally, paxalisib was granted Rare Pediatric Disease Designation and Orphan Drug Designation by the FDA for diffuse intrinsic pontine glioma in August 2020 and for atypical teratoid / rhabdoid tumors in June 2022 and July 2022, respectively. Kazia is also developing EVT801, a small molecule inhibitor of VEGFR3, which was licensed from Evotec SE in April 2021. In addition to its clinical-stage programs, Kazia is advancing NDL2, a potentially first-in-class intracellular PD-L1 protein degrader program targeting a newly identified mechanism of immunotherapy resistance and metastatic progression, as well as MSETC, a potentially first-in-class SETDB1 inhibitor program intended to restore immune signaling in tumors that have become resistant to immunotherapy, including checkpoint inhibitors. Both programs are currently in preclinical development.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, but are not limited to, statements regarding the Offering and the potential gross proceeds therefrom, including the exercise of the Series A Warrants and Series B Warrants; the Company's ability to achieve clinical milestones, including the Stage IV TNBC and HR+/HER2- data readouts that may trigger warrant exercise periods; the Company's intended use of proceeds; and the Company's plans for clinical development of paxalisib. Forward-looking statements are generally identified by words such as "anticipates," "believes," "expects," "intends," "plans," "may," "will," "could," "should," "estimates," "projects," "potential," and similar expressions. These forward-looking statements are based on management's current expectations and assumptions as of the date of this press release and are subject to significant risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied.
Such risks and uncertainties include, but are not limited to: the Company's ability to complete the Offering; the Company's ability to achieve clinical milestones, including the Stage IV TNBC and HR+/HER2- data readouts that trigger warrant exercise periods; risks associated with the conduct of clinical trials and regulatory approvals; volatility in the price of the Company's ADSs and warrants; general economic and market conditions; and the Company's ability to maintain compliance with NASDAQ listing requirements.
For a more complete discussion of risks and uncertainties, please refer to the Company's filings with the SEC, including the "Risk Factors" section of the Company's most recent Annual Report on Form 20-F. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. All forward-looking statements are qualified in their entirety by this cautionary statement.
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SOURCE Kazia Therapeutics Limited