Radiopharm Theranostics Raises A$40M to Propel Clinical Trials Forward
Radiopharm Theranostics has completed a A$35 million institutional placement and launched a A$5 million Share Purchase Plan, both at $0.03 per share, to fund drug manufacturing and clinical trials through 2027.
- A$35 million placement at $0.03 per share to institutional and sophisticated investors
- Strategic investor Lantheus increases stake to 14.5% with A$7.6 million investment
- A$5 million Share Purchase Plan offered to existing eligible shareholders
- One free attaching option per new share, exercisable at $0.039 until October 2027
- Funds to support drug manufacturing, clinical trials, and working capital
Capital Raise Strengthens Financial Position
Radiopharm Theranostics Limited (ASX – RAD) has successfully completed a A$35 million institutional placement priced at $0.03 per share, attracting strong support from both Australian and international investors. This capital injection is complemented by the launch of a A$5 million Share Purchase Plan (SPP) aimed at existing eligible shareholders in Australia and New Zealand, also priced at $0.03 per share. Together, these initiatives are designed to extend the company’s financial runway well into 2027, underpinning its ambitious clinical development programs.
Strategic Backing from Lantheus
Notably, Lantheus Holdings, a key strategic investor, has reaffirmed its confidence by committing A$7.6 million to the placement, increasing its shareholding to 14.5%. This endorsement signals strong industry belief in Radiopharm’s radiopharmaceutical platform and its potential to impact diagnostic and therapeutic markets. CEO Riccardo Cannevari highlighted the importance of this support, emphasizing the company’s readiness to advance six clinical programs through critical upcoming milestones.
Incentives for Investors
Investors participating in both the placement and the SPP will receive attaching options on a one-for-one basis with new shares subscribed. These options carry an exercise price of $0.039 and expire on 31 October 2027, subject to shareholder approval at an Extraordinary General Meeting (EGM) scheduled for early December 2025. The attaching options provide an additional incentive, potentially enhancing shareholder value if the company’s share price appreciates.
Use of Proceeds
The capital raised, combined with an existing cash balance of approximately A$19 million, will be allocated primarily to drug manufacturing (A$6 million), clinical trials (A$34 million), and administration, working capital, and corporate costs (A$19 million). This allocation reflects a balanced approach to advancing product development while maintaining operational stability.
Looking Ahead
The placement shares will rank equally with existing shares, and the tranche 2 placement shares and attaching options remain subject to shareholder approval. The company’s management has expressed optimism about the upcoming period, anticipating significant progress across its clinical programs and encouraging retail shareholder participation through the SPP. The successful execution of this capital raising positions Radiopharm Theranostics to navigate the complex biotech landscape with enhanced financial flexibility.
Bottom Line?
Radiopharm’s fresh capital boost sets the stage for pivotal clinical milestones and potential value inflection in 2026.
Questions in the middle?
- Will shareholder approval for tranche 2 placement shares and attaching options be secured at the December EGM?
- How will the attaching options impact future dilution and shareholder value if exercised?
- What are the timelines and expected outcomes for the six clinical programs funded by this raise?
