Neurizon Therapeutics raises $6.3M to strengthen capital
Key points
- Neurizon Therapeutics secured $4.3 million via a placement and launched a $2 million share purchase plan.
- The company used cash reserves to redeem US$915,750 of convertible notes while its share price dropped to $0.064.
- The transactions aim to simplify the capital structure and fund ongoing clinical development through late Q2 2027.
Neurizon Therapeutics (ASX:NUZ) has secured firm commitments to raise $4.3 million through a placement of 63.2 million shares at $0.068 per share.
The capital raise comes alongside an offer for existing eligible shareholders to apply for up to $30,000 worth of new shares at the same issue price.
The company stated that the placement and share purchase plan will simplify its capital structure and preserve funding optionality for the continued development of NUZ-001.
CEO Dr Chris Bremer said, "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."
In addition to the equity raise, the company redeemed 750,000 remaining convertible notes from Obsidian Global GP, LLC for US$915,750 using cash reserves.
Following the announcement, the Neurizon Therapeutics share price was down at $0.064.
The transaction displaces a potential drawdown of a further $5 million from its existing convertible note facility with Obsidian.
The business continues to direct capital towards clinical and regulatory activities ahead of the Phase 2/3 HEALEY ALS Platform Trial readout targeted for late Q2 2027.
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