Actinogen locks in A$4.77M option underwriting ahead of Alzheimer's trial results
What's the deal? Actinogen MedicalDealroom has a profile for this one. Try Dealroom → (ASX: ACW), an Australian biotech, has secured an underwriting agreement worth about A$4.77 million to cover its remaining unlisted options. Long-standing shareholder Forrest Capital agreed to fully underwrite two tranches, guaranteeing the proceeds regardless of whether options are exercised.
The details: The agreement covers 127,235,644 unexercised ACWAP and ACWAO options, issued under a September 2023 rights issue at an exercise price of 3.75 cents. The options expire on 11 and 15 September 2026, and the deal secures the full A$4,771,336.65 by the end of September.
What's the endgame? Actinogen develops therapies for neurological and neuropsychiatric conditions linked to dysregulated brain cortisol. Its lead compound, Xanamem, targets Alzheimer's disease.
Why now? The funding lands ahead of topline final results from the pivotal XanaMIA Alzheimer's trial, expected in November. Chief financial officer Will Souter said the agreement provides "financial certainty," extending the company's cash runway to late 2027 or early 2028.
The signal: By pre-committing a major shareholder to underwrite the options, Actinogen removes the risk of a shortfall and avoids a potential placement. With a June cash balance of A$16.7 million plus an expected R&D tax incentive, the company enters its most consequential clinical milestone with its balance sheet secured.
Read more: finnewsnetwork.com.au
Image credit: openmedscience
