Algorae Pharmaceuticals (ASX:1AI) has fortified its financial position, announcing a capital raising initiative that generated $4 million before costs.
The influx of capital was achieved through a dual-stream approach: the exercise of 1AIO listed options between November 2025 and March 2026, resulting in the issuance of over 242 million shares, alongside a shortfall placement of approximately 89.3 million shares.
The placement shares were issued to sophisticated, long-term investors at a price of $0.012 per share, representing a 25% discount to the last trading price and a 30.64% discount to the five-day volume weighted average price.
The net proceeds are earmarked to provide a robust foundation for the company’s dual-track growth strategy.
Management intends to use the strengthened working capital to scale its commercial portfolio under the AlgoraeRx banner while simultaneously accelerating research and development within its AlgoraeOS pipeline.
Algorae reports a formidable pro forma cash balance of approximately $5,560,000.
The liquidity is further supported by a $3 million receivables-based debt facility established with ScotPac earlier this year.
At the time of reporting, Algorae Pharmaceuticals’ share price was $0.016.