THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED IN IT, IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.  PLEASE SEE THE IMPORTANT NOTICE IN THIS ANNOUNCEMENT.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (EU) 596 / 2014 WHICH FORMS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 (AS AMENDED) ("MAR").

Avacta Group plc

("Avacta" or the "Group" or the "Company")

Equity fundraise of £16 million

LONDON and PHILADELPHIA - 20 October 2025 - Avacta (AIM: AVCT),  a clinical stage biopharmaceutical company developing pre|CISION^®, a unique oncology delivery platform, is pleased to announce that it has raised gross proceeds of approximately £16 million from institutional and high net worth investors by way of a conditional oversubscribed placing of 25,396,806 new ordinary shares of 10 pence each in the Company (the "Placing Shares") at a price of 63 pence per share (the "Issue Price"), with Zeus Capital Limited acting as sole bookrunner (the "Placing").

The net proceeds of the Placing provide additional working capital to progress the Company's R&D programs into 2H 2026 including progressing the faridoxorubicin Phase 1b trial and planned initiation of the FAP-EXd Phase Ia trial. Completion of the Placing will satisfy the remaining conditions to the Amendments to the Convertible Bond terms, as announced on 29 August 2025 (as defined in RNS No. 1385X) (the "Bond Amendments RNS"). The Company therefore confirms that the quarterly repayment and interest of the Convertible Bond (as defined in the Bond Amendments RNS) due today will be paid in cash.

The following Amendments to the Convertible Bond will take effect upon completion of the Placing (with capitalised terms having the definitions given in the Bond Amendments RNS):

·    Quarterly Convertible Bond repayments and interest in respect of 20 January 2026 and 20 April 2026 payment dates will be deferred until 20 October 2027 (together, the "Deferred Repayments").

·    Upon the earlier of (i) the date on which the Company publishes the data readouts of its Phase 1b trials of faridoxorubicin (FAP-Dox, AVA6000) in triple negative breast cancer and (ii) 30 June 2026, the Bondholder will have the right to accelerate the satisfaction (in cash or shares) of one of both the Deferred Repayments and in addition, from 1 October 2026, at any time accelerate the satisfaction of the quarterly repayments on the  Convertible Bond, subject to a maximum of one acceleration per quarter.

·    The conversion price of the Convertible Bond is to be set at 75.0 pence having previously been set at 88.72 pence under the terms of the reset conversion price as announced on 22 April 2024. The relevant share settlement price in relation to the quarterly repayments and interest remains calculatable based on the then prevailing VWAP.

The Company will continue to progress faridoxorubicin (AVA6000) into 2026, and expects to progress FAP-EXd (AVA6103) into a Phase 1 trial (subject to receipt of an IND from the US Food & Drug Administration) and advance the development of the Company's Dual Payload Technology (AVA6207) with the net proceeds of the Placing extending the Company's cash runway into H2 2026.

Christina Coughlin, CEO of Avacta commented:

"The Board's decision to raise funds enables Avacta to retain 100% ownership of our highly promising programs based on our proprietary pre|CISION^® technology and provide us with a cash runway into H2 2026. Completion of the raise also enables us to meet the terms of the Heights convertible loan note deferment. We believe this decision to be in the long-term interest of shareholders.

"We are continuing to make good progress across all our programs. Our faridoxorubicin trial is gaining momentum, with Phase 1a data presented this weekend at the European Society for Medical Oncology (ESMO) meeting demonstrating a disease control rate in patients treated of 91%.

"Meanwhile, the FAP-EXd (AVA6103) asset is advancing towards clinical development. Our recently revealed dual payload platform is also pioneering how peptide drug conjugates (PDCs) can be utilized for dual payload peptide drug delivery.

"FAP-EXd is on track to enter clinical development in Q1 2026 and is generating interest from a number of potential partners. Importantly, the funds raised allow Avacta to maintain control of this promising asset, allowing us to maximize potential value, while supporting our broader pipeline of programs.

"Avacta continues to focus on building its IP estate, based on our unique pre|CISION^® technology, as we seek to seek to maximize, in the long term, value for the benefit of patients and shareholders."

About Avacta - https://avacta.com/

Avacta is a clinical stage life sciences company developing an innovative proprietary drug delivery peptide drug conjugate (PDC) platform, pre|CISION^®. The pre|CISION^® platform uniquely enables the repurposing of a range of oncology drugs as PDC payloads with the goal to significantly reduce toxicity and side effects for patients by concentrating the drug directly in the tumor.

About pre|CISION^®

The key aspect of pre|CISION^® is its peptide drug conjugates (PDC) technology.  The combination of the cancer drug and the proprietary cleavable peptide (the PDC) is inert and incapable of entering cells and killing them until the peptide is specifically released within the tumor. The active payload in the pre|CISION^® PDC is released when the PDC comes into contact with the common tumor-associated protein, known as fibroblast activation protein (FAP), in the tumor. The release of the payload from the pre|CISION^® product directly in the tumor results in higher concentration of the drug at the tumor and lower blood and healthy tissue levels than standard systemic administration, offering the potential to improve efficacy and patient tolerability.

Background to and information on the fundraise

The Placing has been conducted by Zeus Capital Limited ("Zeus") as sole bookrunner.

The Placing

The Placing comprises the issue of 25,396,806 Placing Shares at the Issue Price to conditionally raise approximately £16 million (before expenses) for the Company.

The Placing Shares will rank pari passu with the existing ordinary shares of 10 pence each in the capital of the Company (the "Ordinary Shares") in issue at the time of admission of the Placing Shares to trading on AIM ("Admission") and will represent approximately 5.8 per cent. of the issued ordinary share capital of the Company immediately following Admission.

The Company and Zeus have entered into a placing agreement (the "Placing Agreement"). Pursuant to the terms of the Placing Agreement, Zeus as agent for the Company, has conditionally agreed to use its reasonable endeavours to procure subscribers for the Placing Shares. Zeus has conditionally placed the Placing Shares with certain investors at the Issue Price.

The Placing Agreement contains certain warranties and indemnities from the Company in favour of Zeus. The Placing is not being underwritten by Zeus nor any other person.

The Placing is conditional upon, amongst other things, the Placing Agreement not having been terminated in accordance with its terms and Admission becoming effective.

Conditions relating to the Placing

The Placing is conditional, inter alia, upon:

a)   the Placing Agreement becoming unconditional in all respects (save for Admission occurring) and not having been terminated in accordance with its terms; and

b)   Admission becoming effective by no later than 8.00 a.m. on 3 November 2025 (or such later time and/or date as the Company and Zeus may agree (being not later than 8.00 a.m. on 10 November 2025)).

Accordingly, if such conditions are not satisfied or, if applicable, waived, the Placing will not proceed.

Issue Price

The Issue Price represents a discount of approximately 8.7 per cent. to the closing middle market price on 17 October 2025, being the last practicable date prior to the publication of this announcement.

Related Party Transaction

Richard Hughes, a director of the Company, is an associate of Zeus as defined under the AIM Rules for Companies.  Zeus is therefore a related party of the Company pursuant to the AIM Rules and the payment of a 5 per cent. commission on the value of the Placing Shares placed by Zeus, being £800,000 and a corporate finance fee of £50,000 (together the "Zeus Fees") pursuant to the terms of the Placing Agreement, are deemed to be a related party transaction. The directors of the Company (other than Richard Hughes who is an associate of Zeus Capital) consider, having consulted with the Company's nominated adviser, Peel Hunt LLP, that the Zeus Fees are fair and reasonable insofar as Shareholders are concerned.

Notes:

References to times in this announcement are to London, UK time unless otherwise stated.

The times and dates mentioned throughout this announcement may be adjusted by the Company in which event the Company will make an appropriate announcement to a Regulatory Information Service giving details of any revised dates and the details of the new times and dates will be notified to the London Stock Exchange and, where appropriate, Shareholders. Shareholders may not receive any further written communication.

This announcement should be read in its entirety. In particular, the information in the "Important Notices" section of this announcement should be read and understood.

Important Notices

This announcement has been issued by, and is the sole responsibility, of the Company.

Zeus, which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting as joint broker to the Company. Zeus is not acting for, and will not be responsible to, any person other than the Company and is not advising any other person or otherwise responsible to any person for providing the protections afforded to clients of Zeus or for advising any other person in respect of the Placing or any transaction, matter or arrangement referred to in this announcement. Zeus has not authorised the contents of this Announcement and, apart from the responsibilities and liabilities, if any, which may be imported on Zeus by the Financial Services and Markets Act 2000 (as amended) ("FSMA") or the regulatory regime established thereunder, no liability is accepted by Zeus for the accuracy of any information or opinions contained in or for the omission of any information from this announcement, for which the Company and the Directors are solely responsible. Zeus accordingly disclaims all and any liability whether arising in tort, contract or otherwise (save as referred to above) in respect of this announcement or any such statement.

This announcement does not constitute, or form part of, a prospectus relating to the Company, nor does it constitute or contain any invitation or offer to any person, or any public offer, to subscribe for, purchase or otherwise acquire any shares in the Company or advise persons to do so in any jurisdiction, nor shall it, or any part of it form the basis of or be relied on in connection with any contract or as an inducement to enter into any contract or commitment with the Company. In particular, the Placing Shares have not been, and will not be, registered under the United States Securities Act of 1933 (as amended) (the "Securities Act") or qualified for sale under the laws of any state of the United States or under the applicable laws of any of Canada, New Zealand, Australia, Japan, or the Republic of South Africa ("Restricted Jurisdictions"), and may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and the securities laws of any relevant state or other jurisdiction of the United States.  The Placing Shares may not be offered or sold to, or for the account or benefit of, US persons (as such term is defined in Regulation S under the Securities Act) or to any national, resident or citizen of Canada, New Zealand, Australia, Japan, or the Republic of South Africa. There will be no public offering of the Placing Shares in the United States or elsewhere.

The distribution or transmission of this announcement and the offering of the Placing Shares in certain jurisdictions other than the UK may be restricted or prohibited by law or regulation. Persons distributing this announcement must satisfy themselves that it is lawful to do so. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. No action has been taken by the Company that would permit an offering of such shares or possession or distribution of this announcement or any other offering or publicity material relating to such shares in any jurisdiction where action for that purpose is required. Persons into whose possession this announcement comes are required by the Company to inform themselves about, and to observe, such restrictions. In particular, this announcement may not be distributed, directly or indirectly, in or into a Restricted Jurisdiction. Overseas shareholders and any person (including, without limitation, nominees and trustees), who have a contractual or other legal obligation to forward this announcement to a jurisdiction outside the UK should seek appropriate advice before taking any action.

This announcement includes "forward-looking statements" which includes all statements other than statements of historical fact, including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations, or any statements preceded by, followed by or that include the words "targets", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "would", "could" or similar expressions or negatives thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company's control that could cause the actual results, performance or achievements of the Group to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. These forward-looking statements speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based unless required to do so by applicable law or the AIM Rules for Companies.

No representation or warranty, express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by Zeus or by any of their respective representatives as to, or in relation to, the accuracy or completeness of this announcement or any other written or oral information made available to or publicly available to any interested party or its advisers, and any liability therefor is expressly disclaimed.

No statement in this announcement is intended to be a profit forecast and no statement in this Announcement should be interpreted to mean that earnings per share of the Company for the current or future financial years would necessarily match or exceed the historical published earnings per share of the Company.

This announcement does not constitute a recommendation concerning any investor's option with respect to the Placing. Each investor or prospective investor should conduct his, her or its own investigation, analysis and evaluation of the business and data described in this announcement and publicly available information.

The Placing Shares will not be admitted to trading on any stock exchange other than the AIM market of the London Stock Exchange.

Neither the content of the Company's website (or any other website) nor the content of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this Announcement.

The price and value of securities can go down as well as up. Past performance is not a guide to future performance.

Information to Distributors

The distribution of this announcement and the offering of the Placing Shares in certain jurisdictions may be restricted by law. No action has been taken by the Company, Zeus or any of their respective affiliates that would permit an offering of the Placing Shares or possession or distribution of this announcement or any other offering or publicity material relating to the Placing Shares in any jurisdiction where action for that purpose is required. Persons into whose possession this announcement comes are required by the Company and Zeus to inform themselves about, and to observe, such restrictions.

UK Product Governance Requirements

Solely for the purposes of the Product Governance requirements contained within Chapter 3 of the FCA Handbook Product Intervention and Product Governance Sourcebook (the "UK Product Governance Requirements") and disclaiming all and any liability, whether arising in tort, contract or otherwise, which any "manufacturer" (for the purposes of the UK Product Governance Requirements) may otherwise have with respect thereto, the PlacingShares have been subject to a product approval process, which has determined that the Placing Shares are: (i) compatible with an end target market of investors who meet the criteria of professional clients and eligible counterparties, each as defined in the FCA Handbook Conduct of Business Sourcebook; and (ii) eligible for distribution through all distribution channels as are permitted by UK Product Governance Requirements (the "UK Target Market Assessment"). Notwithstanding the UK Target Market Assessment, distributors should note that: the price of the Placing Shares may decline and investors could lose all or part of their investment; the Placing Shares offer no guaranteed income and no capital protection; and an investment in the Placing Shares is compatible only with investors who do not need a guaranteed income or capital protection, who (either alone or in conjunction with an appropriate financial or other adviser) are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses that may result therefrom.

The UK Target Market Assessment is without prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the Placing. Furthermore, it is noted that, notwithstanding the UK Target Market Assessment, Zeus will only procure investors who meet the criteria of professional clients and eligible counterparties.

For the avoidance of doubt, the UK Target Market Assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of Chapters 9A or 10A, respectively, of the FCA Handbook Conduct of Business Sourcebook; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any other action whatsoever with respect to, the Placing Shares.

Each distributor is responsible for undertaking its own target market assessment in respect of the Placing Shares and determining appropriate distribution channels.

EU Product Governance Requirements

Solely for the purposes of the product governance requirements contained within (a) EU Directive 2014/65/EU on markets in financial instruments, as amended ("MiFID II"), (b) Articles 9 and 10 of Commission Delegated Directive (EU) 2017/593 supplementing MiFID II and (c) local implementing measures (together the "EU Product Governance Requirements") and disclaiming all and any liability, whether arising in tort, contract or otherwise, which any "manufacturer" (for the purposes of the EU Product Governance Requirements) may otherwise have with respect thereto, the Placing Shares have been subject to product approval process, which has determined that the Placing Shares are: (i) compatible with an end target market of (a) investors who meet the criteria of professional clients and (b) eligible counterparties, each as defined in MiFID II; and (ii) eligible for distribution through all distribution channels as are permitted by EU Product Governance Requirements (the "EU Target Market Assessment"). Notwithstanding the EU Target Market Assessment, distributors should note that: the price of the Placing Shares may decline and investors could lose all or part of their investment; the Placing Shares offer no guaranteed income and no capital protection; and an investment in the Placing Shares is compatible only with investors who do not need a guaranteed income or capital protection, who (either alone or in conjunction with an appropriate financial or other adviser) are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses that may result therefrom.

The EU Target Market Assessment is without prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the Placing. Furthermore, it is noted that, notwithstanding the EU Target Market Assessment, Zeus will only procure investors who meet the criteria of professional clients and eligible counterparties.

For the avoidance of doubt, the EU Target Market Assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of MiFID II; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any other action whatsoever with respect to the Placing Shares.

Each distributor is responsible for undertaking its own target market assessment in respect of the Placing Shares and determining appropriate distribution channels.