How Race Oncology raised $29.7m in an oversubscribed SPP.

Learn more about the story of an ASX-listed biotechnology company, Race Oncology who came InvestorHub because they wanted to do an SPP to raise sustainable capital from retail.

Read the case study

Race Oncology (ASX:RAC).

Industry: Biotech
Headquarters: Sydney
Market cap: ~$400m

Problem.To fund the next stage of its clinical trials for its next-generation anti-cancer drug, Zantrene, Race Oncology needed a solution to raise more capital.

Solution.InvestorHub's ability to measure and model capital raising potential predicated a reliable $20m raise to RAC via an SPP.

Impact.With an oversubscribed SPP, RAC could now enter 2022 with the funding they required to continue the development of Zantrene.

Introducing RAC.

Race Oncology, a cutting-edge precision oncology company listed on ASX, is making waves in the world of cancer treatment with its Phase II/III drug, Zantrene. The drug targets a specific protein linked to several types of cancer, including kidney cancer and melanoma. With promising clinical data supporting Zantrene's effectiveness in treating leukaemia, breast, and ovarian cancer, excitement is in the air for Race Oncology and its shareholders.

Fostering strong connections with shareholders.

Race Oncology emphasises maintaining open, frequent communication with its shareholders. Chief Scientific Officer Daniel Tillett believes that proper shareholder engagement is crucial, saying,

The entire management team, including CEO Phil Lynch, takes responsibility for keeping shareholders informed about Race Oncology's future. They release regular updates through various channels, such as mail, email, social media, and forums, fostering a deep understanding and belief in the company's mission among their investor base.

"InvestorHub gave us a deeper understanding of our shareholder base at scale and was able to show us, through data and evidence, that we could raise the required funds solely through a shareholder offer. Their technology made it easier to communicate with our shareholders en masse, answering their questions as well as optimising allocations as the result of oversubscriptions."

Daniel Tillett CEO @ ASX:RAC

In control of the capital raise decision.

In 2021, Race Oncology sought to raise capital to fund the following stages of trials for Zantrene. To fully understand their options, the company utilised InvestorHub to measure and model their capital potential, which predicted a reliable $20m raise via an SPP. This prediction provided the confidence needed for Race Oncology to proceed with an SPP instead of a traditional placement.

Raising capital made easy with InvestorHub.

Partnering with InvestorHub, Race Oncology launched the SPP in November and December 2021. The campaign exceeded expectations, capturing $43.9m worth of oversubscribed bids from 2,340 participating shareholders within three weeks.

As a result, Race Oncology raised $29.7M in a heavily oversubscribed Share Purchase Plan, demonstrating the impact of proactive shareholder engagement on capital-raising outcomes.

CEO Phil Lynch expressed gratitude for the strong shareholder support, stating,

“The Race team has been humbled by the extraordinary show of shareholder support for our Share Purchase Plan... We move into 2022 in an exceptional position, with many critical, reportable milestones ahead of us.”

Chief Scientific Officer Daniel Tillett echoed the sentiment, saying, “InvestorHub gave us the means and ability to continue to work with our incredibly generous shareholder base and continue our journey of growth together... It is extremely humbling to have so many of our shareholders willing to join and support us on the exciting journey to bring Zantrene to patients in need.”

With InvestorHub, RAC was able to:

• Generate investor demand and raise sticky capital from retail investors.
• Communicate with shareholders before the raise with targeted email campaigns.
• Accurately gauge the impact of investor marketing on shareholder acquisition.

Want to learn how InvestorHub can help your business?

Book a discovery call with InvestorHub today. No hard sell, no jargon, just a friendly chat about you, your company, and whether InvestorHub can help you reach your goals.

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