Invion Launches Fully Underwritten Loyalty Option Offer to Fuel Cancer Trials
Invion Limited has announced a fully underwritten entitlement offer of Loyalty Options to raise capital for advancing its cancer clinical trials. The offer, led by Blue Ocean Equities and supported by CEO Prof Thian Chew, invites eligible shareholders to participate in a non-renounceable rights issue.
- Fully underwritten entitlement offer led by Blue Ocean Equities
- CEO Prof Thian Chew sub-underwrites $150,000 and commits to full participation
- Eligible shareholders can subscribe for 77 Loyalty Options per 100 shares at $0.015 each
- Options exercisable at $0.14, expiring June 2027, with bonus Piggy-Back Options for early exercise
- Funds to support ongoing Phase I/II cancer trials and general working capital
Capital Raise to Support Clinical Progress
Invion Limited (ASX, IVX), a life-science company focused on innovative photodynamic therapy for cancer treatment, has launched a fully underwritten pro-rata entitlement offer to raise up to approximately $1 million initially, with potential to raise up to $16 million if all options are exercised. The funds will primarily support its ongoing Phase I/II non-melanoma skin cancer trial and an upcoming anogenital cancer trial in collaboration with the Peter MacCallum Cancer Centre.
Offer Structure and Leadership Commitment
The entitlement offer allows eligible shareholders to subscribe for 77 Loyalty Options for every 100 shares held as of the record date, at a price of $0.015 per option. Each Loyalty Option carries an exercise price of $0.14 and expires on 30 June 2027. Notably, Invion’s Executive Chairman and CEO, Professor Thian Chew, has committed to taking up all his entitlements and has sub-underwritten an additional $150,000 of the offer, signaling strong insider confidence. Other directors also intend to participate, reinforcing management’s alignment with shareholder interests.
Incentives and Market Considerations
To encourage early exercise, Invion is offering Piggy-Back Options at no cost for every two Loyalty Options exercised before 31 December 2025. These Piggy-Back Options have a higher exercise price of $0.21 and also expire in mid-2027, although they will not be listed on the ASX. The offer is non-renounceable, meaning shareholders cannot trade or transfer their entitlements, and those who do not participate will forfeit their rights without compensation.
Regulatory and Geographic Scope
The offer is open to shareholders registered in Australia, New Zealand, and Hong Kong, excluding US persons due to regulatory restrictions. The Loyalty Options will be applied for quotation on the ASX, subject to approval. The timetable sets the offer opening on 1 July 2025 and closing on 10 July 2025, with results announced shortly thereafter.
Strategic Outlook
Invion’s Photosoft™ technology represents a promising next-generation photodynamic therapy that aims to provide less invasive cancer treatment with minimal side effects. This capital raise is a critical step to ensure the company can continue advancing its clinical programs and maintain momentum in a competitive biotech landscape. Investors will be watching closely to see how the market responds to the dilution risk and the progress of Invion’s trials in the coming months.
Bottom Line?
Invion’s fully underwritten offer underscores management’s confidence but raises questions on dilution and clinical milestones ahead.
Questions in the middle?
- Will shareholder uptake meet expectations to avoid significant shortfall?
- How will the market price the potential dilution from exercising Loyalty and Piggy-Back Options?
- What are the upcoming clinical trial milestones that could drive share price momentum?
