Radiopharm’s (ASX:RAD) shares rise on approval of strategic investment fuelling growth

August 14, 2024 03:38 PM AEST | By Aditi Sarkar

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Radiopharm’s (ASX:RAD) shares rise on approval of strategic investment fuelling growth — Image source: Company website

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Highlights

Radiopharm’s shares jumped by 6.25% to AU$0.034 on the ASX today.

The company received shareholder approval of a AU$70 million capital raise including a strategic investment from Lantheus.

This capital raise will accelerate the development of RAD’s portfolio and extend the company’s cash runway through to the end of 2026.

Shares of clinical-stage radiotherapeutics company Radiopharm Theranostics (ASX:RAD) jumped by 6.25% to AU$0.034 on the ASX today. This rally followed the approval of a AU$70 million capital raise that includes a strategic investment from Lantheus. This approval was announced at the company’s Extraordinary General Meeting (EGM).

The approval encompasses the final components of the AU$70 million capital raising initially announced on 25 June 2024, including a AU$7.5 million investment from Lantheus Holdings (NSDQ: LNTH) at AU$0.05 per share. Lantheus is a major NASDAQ-listed radiopharmaceutical-focused company.

Reflecting on this development, Radiopharm’s CEO & MD, Riccardo Canevari, remarked, “The capital raising and strategic investment by Lantheus, a leading global radiopharmaceutical company, strongly endorses the potential within RAD. This significant confidence in our assets and future pipeline is further reinforced by backing from specialist biotechnology institutional investors in the US, Australia, and beyond. As we advance, this support not only solidifies our growth trajectory but also enhances our position in the global market.”

The Lantheus investment is part of a broader package announced on 20 June 2024, which includes:
- Potential additional investment of up to USD 5.0 million (AUD 7.5 million) through options exercisable at USD 0.05 per share within six months.

- A USD 2.0 million (AUD 3.0 million) agreement for transferring and developing preclinical assets, with the receipt of funds announced to the ASX on 5 August 2024.

As noted by Mr Riccardo, the capital raise will accelerate the development of RAD’s portfolio and extend the company’s cash runway through to the end of 2026.

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