Biotech Values

[DewDiligence]

KZIA/KZA.AX—This is a rights offering to existing shareholders. Any shareholder who does not participate in full (i.e. by acquiring 1 new share for every 3 shares currently owned) will be diluted by shareholders who do participate insofar as the offering price of A$0.80 is a hefty discount to today’s (KZA.AX) closing price of A$0.96.

However, owners of the KZIA ADSs that trade on Nasdaq do not seem to have a way to participate in the rights offering, which means you will be diluted with no say in the matter.

(Note that 1 KZIA ADS on Nasdaq is equivalent to 10 ordinary shares on the ASX.)