Bio-Gene’s $2.1M Raise Hinges on Shareholder Approval Amid Regulatory Push
Bio-Gene Technology Limited has raised $2.1 million through a placement and launched a Share Purchase Plan to fund critical safety studies for its flagship insecticide Flavocide®, alongside development of Qcide and strategic initiatives.
- Raised $2.1 million via a two-tranche placement at 2.3 cents per share
- Share Purchase Plan offers eligible Australian shareholders up to $15,000 in shares at placement price
- Funds earmarked for Flavocide® regulatory safety studies and Qcide scale-up
- Second tranche and attaching options subject to shareholder approval at EGM by 14 July 2025
- Stralis Capital Partners acted as sole lead manager for the placement
Capital Raise to Propel Regulatory Milestones
Bio-Gene Technology Limited (ASX:BGT), an Australian innovator in bio-insecticides, has announced a $2.1 million capital raise through a placement to sophisticated investors, complemented by a Share Purchase Plan (SPP) for existing eligible shareholders. The funds are primarily targeted at advancing key regulatory-enabling safety studies for Flavocide®, the company’s flagship insecticide product.
Managing Director Tim Grogan emphasised the strategic importance of this funding round, noting that regulatory approval of Flavocide®’s active constituent in Australia represents a pivotal milestone for Bio-Gene’s commercial trajectory. The capital injection will also support the scale-up of Qcide, another product in the company’s pipeline, alongside broader product development and strategic projects.
Placement Details and Shareholder Participation
The placement shares are priced at 2.3 cents each, reflecting an 8% discount to the last closing price and a 17.9% discount to the 15-day volume weighted average price as of 30 April 2025. The raise is structured in two tranches: the first tranche of approximately 50.34 million shares will be issued shortly under existing placement capacity, while the second tranche of around 41.9 million shares is conditional upon shareholder approval at an extraordinary general meeting (EGM) scheduled on or before 14 July 2025.
In addition to the placement, Bio-Gene is offering an SPP to eligible Australian shareholders, allowing them to purchase up to $15,000 worth of shares at the same discounted price without brokerage fees. This inclusive approach aims to broaden shareholder participation ahead of the company’s next growth phase.
Options and Incentives Aligned with Growth Strategy
Subject to shareholder approval, the company plans to issue approximately 92 million free-attaching unlisted options alongside the placement shares. These options have exercise prices of $0.034 and $0.046, expiring in 2028 and 2030 respectively, providing investors with potential upside aligned with Bio-Gene’s long-term growth prospects. Additionally, adviser options on similar terms will be granted to Stralis Capital Partners, the sole lead manager of the placement.
Strategic Outlook and Market Implications
Bio-Gene’s focus on natural, resistance-overcoming insecticides positions it well within a market increasingly demanding safer and more sustainable pest control solutions. The successful completion of regulatory safety studies for Flavocide® could unlock significant commercial opportunities across public health, agriculture, and grain storage sectors.
However, the conditional nature of the second tranche and options issuance introduces an element of uncertainty, hinging on shareholder approval and regulatory progress. Investors will be watching closely for updates from the upcoming EGM and subsequent regulatory milestones.
Bottom Line?
Bio-Gene’s latest capital raise sets the stage for critical regulatory progress and product scale-up, but shareholder approval and regulatory outcomes remain key hurdles ahead.
Questions in the middle?
- Will shareholders approve the second tranche and attaching options at the upcoming EGM?
- How soon can Bio-Gene expect regulatory approval for Flavocide® following the safety studies?
- What commercial partnerships might emerge as Bio-Gene advances Qcide’s scale-up and product development?
