Kazia Therapeutics Limited (NASDAQ: KZIA) announced that it has regained full compliance with Nasdaq’s listing standards after completing a $50 million private placement of equity securities. The transaction lifted the company’s stockholders’ equity above the $2.5 million minimum required by Nasdaq Rule 5550(b)(1), eliminating the need for a hearing before the Nasdaq Hearings Panel and allowing the company’s American Depositary Shares to continue trading on the Nasdaq Capital Market.
The private placement, led by Adar1 Capital Management, Ikarian Capital, and Stonepine Capital Management, generated net proceeds of approximately $46.5 million after fees and expenses. The infusion raised Kazia’s balance sheet to a level that not only satisfies the equity threshold but also extends the company’s cash runway into the second half of 2028, providing a buffer for late‑stage oncology trials and regulatory interactions for its lead program, Paxalisib.
Prior to the raise, Kazia had received a staff determination letter on November 12 2025 stating that it had not met the $35 million market value of listed securities requirement by November 10. The letter triggered a scheduled hearing for January 8 2026, which was subsequently cancelled once the company restored compliance. The event therefore removes a significant delisting risk that had been looming over the company’s operations and investor confidence.
With the strengthened balance sheet, Kazia can accelerate development of Paxalisib in its GBM AGILE study for glioblastoma and in trials for triple‑negative breast cancer. The company’s management believes the additional capital will allow it to pursue further development opportunities without immediate dilution, positioning it to respond to regulatory feedback and to capitalize on positive data from recent studies.
Dr. John Friend, CEO of Kazia, said, “This outcome reflects the progress we have made strengthening the Company’s financial position. With full Nasdaq compliance restored and a substantially enhanced balance sheet following our recent financing, we are well positioned to focus on advancing our clinical programs and building long‑term shareholder value.”
Analysts upgraded the stock and raised price targets in response to the announcement, citing the elimination of delisting risk, the robust capital raise, and the positive trajectory of the company’s clinical pipeline as key drivers of the favorable reaction.
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