Clinical-stage biotech Racura Oncology raises $34.3m to fully fund three cancer drug trials

Clinical-stage biotechnology company Racura Oncology (ASX: RAC) has raised a total of $34.3 million over two years to fully fund three clinical trials of its lead oncology asset RC220, completing the capital raise without paying any broker or underwriter fees.

The funds, accumulated since June 2024 through a combination of bonus and "piggyback" option conversions, private placements and option underwriting, will bankroll a Phase 3 program in acute myeloid leukaemia (AML), a Phase 1a/b trial in EGFR-mutated non-small cell lung cancer known as HARNESS-1, and a Phase 1a/b cardioprotection trial (CPACS) in solid tumour patients treated with the chemotherapy drug doxorubicin.

The bulk of the raise came from a 97 per cent exercise rate on 20.1 million piggyback options, which delivered $24.38 million.

A strategic placement of $1 million to an undisclosed specialist institutional investor at $1.90 per share - a 23 per cent discount to the prevailing market price - brought cumulative funds to $31.2 million as of 4 June 2026. A partial placement of 509,205 shortfall options contributed a further $636,506.

The company's underwriter for the option program was Dr AJ Robinson, an existing shareholder who had previously provided $3.22 million in funding at a premium in December 2025.

“We are deeply grateful for the enormous support shown by our shareholders," says Racura CEO Dr Daniel Tillett.

"Raising more than $34 million directly from our shareholders over the past two years demonstrates exceptional confidence in us and our mission.

"We look forward to updating investors on RC220’s clinical progress in the coming months.”

Racura reported cash reserves of $19.38 million at 31 March 2026, representing an estimated 6.45 quarters of available funding at current burn rates.

The company's clinical pipeline is advancing on multiple fronts.

The CPACS cardioprotection trial recently cleared its Safety Review Committee to escalate dosing from 40 mg/m² to 80 mg/m² of RC220, with no dose-limiting toxicities observed at the lower dose level. The HARNESS-1 lung cancer trial is also actively enrolling patients.

The Phase 3 AML trial, the most advanced of the three programs, has not yet dosed its first patient but is expected to begin enrolment in the second half of 2026.

Executive chair Dr Pete Smith has described the 97 per cent piggyback option conversion rate as "a remarkable outcome", thanking shareholders and the underwriter for their support.

The zero-fee structure of the raise is notable for a company of Racura's size.

By relying on existing shareholder conversions and a supportive underwriter rather than institutional brokers, the company avoided the placement fees that typically consume between 2 and 6 per cent of capital raised by ASX-listed biotechs.