iX Biopharma to raise at least $5m via OCBC share placement
iX Biopharma Ltd plans to raise at least $5 million through a share placement with OCBC, targeting institutional and accredited investors in Singapore. The funds will be allocated as follows: 40% for U.S. market expansion, 30% for equipment purchases, and 30% for working capital. The placement involves 50 million new shares priced at $0.100 each, representing a 9.67% discount to the VWAP. Completion is expected after receiving a listing notice from SGX Catalist, with a 90-day lock-up period for additional securities issuance.
Proceeds from the placement will be used for three key purposes, including 40% for U.S. market expansion.
iX Biopharma Ltd has entered into a placement agreement with OCBC to raise at least $5.0m through a non-underwritten, best-efforts share placement.
The offering will be made to institutional and accredited investors in Singapore as an exempt offering under Sections 274 and 275(1) of the Securities and Futures Act (SFA), meaning no prospectus will be issued.
The placement involves a minimum of 50,000,000 new ordinary shares priced at $0.100 per share, representing a 9.67% discount to the VWAP of $0.1107, based on trades between 24 October and the trading halt on 27 October.
The new shares amount to approximately 5.63% of iX Biopharma’s existing share capital of 888,843,413 shares, and about 5.33% of the enlarged share base following the issuance.
Proceeds from the placement will be used for three key purposes: 40% for U.S. market expansion, particularly marketing; 30% for equipment purchases; and 30% for working capital and placement-related expenses. Any funds raised above the minimum $5m will go toward debt repayment.
The shares will be issued under the general mandate approved at the company’s 2025 Annual General Meeting, which allows up to 100% of issued shares (with a maximum of 50% non-pro-rata issuance). iX Biopharma confirmed that it has not made any prior issuances under this mandate and will remain within its authorised limits.
The agreement includes customary conditions, including the receipt of a listing and quotation notice (LQN) from SGX Catalist, valid representations and warranties, and no occurrence of any Material Adverse Effect.
OCBC is entitled to a 3.5% commission on the gross proceeds of the shares placed. Completion is expected to take place one business day after LQN issuance, or on a mutually agreed date.
As part of the agreement, iX Biopharma has agreed to a 90-day lock-up, during which it will not issue or sell additional securities, except for the new placement shares and any pre-existing convertible instruments.
This placement follows the company’s previous fundraising via a rights issue on 19 July 2024, which involved 115,018,984 shares at $0.03 and 57,509,479 warrants at $0.06 (with a two-year term).
iX Biopharma has appointed UOB Kay Hian as a sponsor to assist with the listing and quotation application for the new shares.
The company cautioned that the placement is subject to various conditions and approvals, and advised investors to exercise care when evaluating the deal.
