Actinogen Medical Limited (ASX: ACW) has secured an underwriting agreement for its remaining unlisted options, expected to generate approximately $4.77 million. Forrest Capital Pty Ltd, a long-standing shareholder, has agreed to fully underwrite two tranches of options. Actinogen Medical is an ASX-listed biotechnology company developing novel therapies for neurological and neuropsychiatric diseases associated with dysregulated brain cortisol, with its lead compound, Xanamem, targeting conditions like Alzheimer’s Disease. This financial certainty arrives as the company enters a potentially transformative period, with pivotal trial results due within months.
The underwriting pertains to ACWAP and ACWAO options, issued as part of a September 2023 non-renounceable rights issue with an exercise price of 3.75 cents and expiry dates of 11 and 15 September 2026. A total of 127,235,644 unexercised options are covered by the agreement, representing the $4,771,336.65 in expected proceeds. Forrest Capital’s commitment ensures that Actinogen will receive the full value of these unexercised options, eliminating the need to contemplate a placement for any potential shortfall after their expiry.
Actinogen’s Chief Financial Officer, Will Souter, commented that the agreement provides financial certainty, securing the remaining funding by the end of September and extending the company’s cash runway to late 2027 or early 2028. This financial bolster comes ahead of crucial topline final results from the pivotal Alzheimer’s disease XanaMIA trial, anticipated in November this year. The company also highlighted strong ongoing enrolment in the trial’s open-label extension, positive regulatory alignment discussions, and the recent publication of a peer-reviewed depression trial manuscript. Combined with a June-end cash balance of $16.7 million and an expected R&D tax incentive, Actinogen’s financial position is well-supported through its upcoming milestones.
