• 1AD raises $1.9 million of new equity from the exercise of listed 1ADOA options, led by an existing major shareholder
  • Options exercised at a 20% premium to the closing price on May 29 2024
  • Proceeds from exercised options to help AdAlta advance strategic partnerships and maximise benefits of other funding sources


Special Report: Aussie biotech AdAlta has raised ~ $1.9m through the exercise of options as it advances strategic partnerships during H2 CY24.

In 2023 AdAlta (ASX:1AD)  issued 173,075,186 options as part of private placements and entitlement offers (1ADOA options) with an exercise price of 3 cents/share, and an expiry date of 29 May 2024.

1AD says at the expiry date, 62,570,306 (36.2%) options were exercised, raising $1,877,109 at a 20% premium to the closing price of AdAlta shares on 29 May 2024 of 2.5 cents/share.

New equity generated by the exercised options included an investment of $1.8 million made by an entity associated with Stuart Morris, one of 1AD’s top five shareholders.  As a result of the investment, Morris increased his holding in AdAlta to 16.36%.


Enhanced financing flexibility

The new equity provides 1AD enhanced financing flexibility as the company advances strategic partnerships and internal development programs across its three priority areas including:

  • AdSolis – partnering and third-party investment to progress lead asset AD-214 into Phase II clinical trials for Idiopathic Pulmonary Fibrosis (IPF)
  • AdCella: – accelerating due diligence towards in-licensing a pipeline of Asian originated, clinical stage cellular immunotherapies
  • Discovery – evaluating opportunities to maximise the productivity of AdAlta’s discovery programs and processes.


1AD now has increased flexibility over the timing of optional drawdowns under its recently announced investment agreements with New Life Sciences Capital LLC and existing shareholder the Meurs Group.

The company announced at the end of April an investment of up to $3m by New Life Sciences Capital and up to $700k from existing shareholder Meurs Group to support and accelerate its partnerships with venture capital firm SYNthesis BioVentures Fund (SYNBV).

SYNBV and 1AD are collaborating to form AdCella, a jointly owned entity aimed at facilitating the entry of innovative cellular immunotherapies from Asia into western regulated markets, leveraging AdAlta’s i-body technology.

To date, 1AD has accessed an initial investment of $1.2 million of the total $3.7 million available via the investment agreements.


‘Vote of confidence’

CEO and MD Tim Oldham says exercising of 1ADOA options by holders was a “vote of confidence” in the company’s strategy.

“I wish in particular to acknowledge the substantial investment by existing major shareholder Stuart Morris,” Oldham says.

“This is another example of the strong support we have from major, long-term shareholders.

“The new equity flowing from the exercised options means AdAlta now has the funding needed to materially advance its AdSolis, AdCella and discovery programs into the second half of calendar 2024.”

He says it also provides the company with increased flexibility over the timing of any further drawdowns from the tranched institutional investments announced in April 2024.

“We now look forward to further AdSolis and AdCella milestones in the months ahead,” he says.



This article was developed in collaboration with AdAlta,  a Stockhead advertiser at the time of publishing.


This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.