Highlights

• Lind Partners, a US institutional investor, has invested up to AU$12.5 million in Radiopharm.
• Under a share subscription agreement, the company will receive AU$1.2 million, and under a share purchase agreement, it will receive further AU$11.3 million.
• The share purchase agreement is a staged placement.
• Funds would aid the company’s clinical trial pipeline.

Radiopharm Theranostics Limited (ASX: RAD) has entered into a share subscription agreement and a share purchase agreement with Lind Global Fund II, LP, managed by US-based The Lind Partners.

The share subscription agreement provides a funding of AU$1.2 million, while the share purchase agreement is a staged placement of up to AU$11.3 million. Under the share purchase agreement, the funding will be provided through monthly instalments of AU$50k to AU$1 million, over an initial period of 12 months. The first instalment will be of AU$300,000.

The funds will be used to advance the company’s clinical trial pipeline.

Lind Partners invests in small and mid-cap companies which publicly trade in Australia, the UK, the US, and Canada.

Data source: Company Update

Terms of the Share Subscription Agreement

Under the agreed terms, total 20,000,000 fully paid ordinary shares in RAD will be issued to Lind. Also, around 8,955,224 options will be issued at an exercise price of AU$0.09 each and an expiration date of 48 months.

Terms of the A$11.3 million Share Purchase Agreement

As per the agreement, Lind will subscribe for a first tranche of AU$300,000 and thereafter, monthly Tranches of ranging from AU$50,000 to AU$1,000,000.

For each tranche, Lind will release funds at the relevant tranche closing, and RAD will issue the shares to Lind 28 days afterward. RAD is required to pay an establishment fee of AU$25,000 to Lind, along with a 3.5% of the amount funded in each monthly tranche.

The agreement doesn’t allow investor to hold >9.99% of RAD’s shares at any one time. Also, no tranche should be >1.15% of RAD’s market cap.

Image source: Company update

RAD shares traded at AU$0.065 apiece at the time of writing on 12 February 2024.