Neurizon Therapeutics has secured firm commitments for a $4.3 million placement and will seek up to another $2 million from retail shareholders.
The funds enable the Melbourne company to pay out its convertible note holder and avoid a further drawdown on that facility before its lead ALS drug reaches a pivotal trial readout next year.
The company will issue 63.2 million new shares to new and existing institutional, sophisticated and professional investors at 6.8 cents each. That price is a 20.9 per cent discount to the last closing price of 8.6 cents on 28 October and an 18.9 per cent discount to the five-day volume-weighted average price of about 8.38 cents. The placement includes $150,000 from the board and management. Directors account for $100,000 of that, subject to shareholder approval at a general meeting expected on 17 December.
Chek Loon Tan, the company's largest shareholder, again stepped in as a cornerstone investor. His total funding through Neurizon placements, including this one, now comes to $3.6 million.
The share purchase plan is open to eligible shareholders in Australia and New Zealand. They can each apply for up to $30,000 worth of shares at the placement price, without brokerage. The plan opens on 16 November and closes on 4 December. Neurizon says it may increase the amount if demand exceeds $2 million, or scale back applications. Subject to shareholder approval, investors in both the placement and the plan will be offered one free option for each new share. The options have an exercise price of 12 cents and expire after 18 months. Neither offer is underwritten. MST Financial and Morgans are joint lead managers on the placement.
Neurizon has also redeemed the remaining 750,000 convertible notes held by Obsidian Global for US$915,750, about A$1.31 million, using existing cash. That brings total redemptions to 1.75 million of the 3,575,500 notes issued in February. No notes are now on issue, so the risk of dilution from conversion is gone. The company had signed the facility with Obsidian in December 2025.
The placement replaces a further $5 million drawdown planned after this month's annual general meeting. Neurizon has withdrawn the resolution seeking approval to issue more notes to Obsidian. It says it will not draw on the facility until at least April 2027, and any later drawdown will need shareholder approval. The facility and an existing R&D facility remain available, and the company says it is still exploring non-dilutive funding and strategic partnerships.
Neurizon says it remains fully funded to topline results from Regimen I of the Phase 2/3 HEALEY ALS Platform Trial, which are expected late in the June quarter of 2027. Enrolment in the trial is complete. In recent Type C feedback, the US Food and Drug Administration said the study could potentially serve as a single registrational trial if it shows substantial evidence of effectiveness. The company has also signed a long-term supply agreement with Elanco Animal Health. It is preparing to launch an expanded access program funded by the US National Institutes of Health, which is expected to provide NUZ-001 to about 200 more ALS patients in the United States.
"The successful completion of this Placement represents an important step in strengthening and simplifying Neurizon's financial position ahead of a defining period for the Company. Importantly, it allows us to fully displace the next potential drawdown under the Company's convertible note facility following our redemption of all remaining convertible notes held by Obsidian," Chief Executive Dr Chris Bremer said.
"Whilst the convertible note facility provides valuable funding support to the Company, with the Regimen I trial now fully enrolled and topline results approaching, we have taken advantage of the flexibility built into the facility to take advantage of other funding options available to us and that will simplify our capital structure, with a commitment not to drawdown on the facility until at least April 2027. The Company will only consider further drawdowns if the Board considers they are in our shareholders' best interests."
"Our priority is to make disciplined funding decisions that are in the best interests of shareholders," he said.
"With our clinical program progressing towards topline results and recent FDA feedback providing further clarity on the potential US regulatory pathway, we remain focused on delivering this important milestone and positioning Neurizon to maximise the opportunities that may follow."