IIQ Share Purchase Plan Oversubscribed
Our Biotech Investment Inoviq (ASX: IIQ) has recently completed its share purchase plan with ~3.5x more demand than the initial target of $2M.
IIQ had $7.3M in applications for the SPP, but the company chose to scale back applications and take $2.379M.
The strong demand is a good sign in a market where most capital raises are struggling to get over the line…
Together with the recent $7M placement, IIQ has now raised a total of ~$9.4M.
How does today’s news impact our IIQ Investment Memo?
Funding risk
Small caps often need to raise cash to fund their growth. Whilst IIQ is generating revenue now, it is still making a loss - i.e. it spends more cash than it brings in.
If IIQ is unable to develop a self-sustaining business model with positive operating cash flow, this could force IIQ to raise capital in the future, potentially at a discount to market prices to secure funds.
Source: IIQ Investment Memo 2024
IIQ having raised ~$9.4M now has a cash runway to deliver material news without having to worry about going back to the market to raise cash.
The strong demand for the raise is also a good sign that the company’s shareholder base is relatively well engaged.
The demand could mean strong on market buying if IIQ can deliver material catalysts.
What’s Next for IIQ?
Key upcoming catalysts and milestones for IIQ include:
- Clinical data and regulatory progress for its breast cancer monitoring test
- Advancement of its solid tumour therapy toward clinical trials
- Updates on its Alzheimer's disease diagnostic program
- Potential new partnerships and commercial deals for its exosome platform
And below is a timeline of potential catalysts:
