Adherium Launches $4.5M Entitlement Offer with New Shares and Options at 0.5c
Adherium Limited has announced a partially underwritten entitlement offer aiming to raise approximately A$4.5 million through the issuance of new shares and options at a significant discount. The capital raise is designed to accelerate patient onboarding and product development for its respiratory monitoring technology.
- Entitlement offer of 1 new share and 1 new option per existing share at A$0.005 each
- Maximum raise of approximately A$4.492 million, partially underwritten to A$1.4 million
- Options include bonus options exercisable if new options are exercised before November 2025
- Funds earmarked for customer onboarding, product development, sales recruitment, and working capital
- Offer includes Top-Up Facility and potential Shortfall placement within 3 months post-close
Entitlement Offer Details and Structure
Adherium Limited (ASX, ADR), a medical device company specialising in respiratory medication monitoring technology, has launched an accelerated non-renounceable pro-rata entitlement offer to raise up to approximately A$4.492 million. Eligible shareholders are invited to subscribe for 1 new share for every share held as of the record date, at an issue price of 0.5 cents per share, accompanied by 1 new option per new share issued. Additionally, if these new options are exercised prior to 15 November 2025, shareholders will receive a bonus option for each option exercised.
The offer is partially underwritten to the tune of A$1.4 million by PAC Partners Securities Pty Limited, providing a degree of certainty to the capital raising. The entitlement offer is split into an institutional component, which closed on 25 June 2025, and a retail component, closing on 10 July 2025. Shareholders who fully subscribe to their entitlement may also apply for additional securities through a Top-Up Facility, subject to availability and board discretion. Any remaining shortfall after the close of the offer may be placed by the board within three months at the same issue price.
Use of Funds and Strategic Intent
The proceeds from the entitlement offer will be directed towards scaling up customer onboarding, with a target of increasing patient numbers on the platform from approximately 1,500 to 6,500 by the end of 2025. Additional funds will support product development and capital expenditure, recruitment of sales contractors and a CEO and sales team, as well as data science initiatives to strengthen product impact evidence. General working capital needs will also be met, ensuring operational continuity as the company advances its commercialisation efforts.
This capital raise comes at a time when Adherium is focused on expanding the adoption of its Hailie® respiratory medication monitoring technology, which has received regulatory clearances including from the US FDA. The company faces typical challenges of early-stage medical device firms, including competitive pressures, regulatory compliance, and the need for ongoing funding to support growth and innovation.
Potential Impact on Shareholders and Market
The issue price represents a significant discount; approximately 29% to the last closing price and around 30% to recent volume-weighted average prices; raising the risk of dilution for shareholders who do not participate. The offer is non-renounceable, meaning entitlements cannot be traded or transferred, which may influence shareholder decisions. Existing substantial shareholders, including Trudell Medical Limited and Phillip Asset Management Ltd, have indicated intentions to maintain their holdings by participating fully in the offer.
Following completion of the entitlement offer, the company’s issued share capital could nearly double, with up to approximately 1.8 billion shares on issue, alongside a substantial increase in unlisted options. The company’s pro-forma balance sheet post-raise shows a strengthened cash position exceeding A$4.4 million, providing a more robust financial footing to pursue its strategic objectives.
Risks and Considerations
Investors should note the speculative nature of the investment, with risks including the company’s ability to execute its commercial strategy, regulatory compliance challenges, competition in the medical device sector, and the need for future funding. The value of the new options and bonus options depends on the company’s share price performance, and there is no guarantee they will be exercised. Furthermore, operational risks such as cybersecurity, product liability, and retention of key personnel remain pertinent.
Adherium’s directors caution that the offer securities carry no guarantee of dividends or capital return, and shareholders should carefully consider the risk factors outlined in the prospectus and seek professional advice before participating.
Bottom Line?
Adherium’s $4.5 million entitlement offer aims to fuel growth but carries dilution risks and hinges on successful patient onboarding and market adoption.
Questions in the middle?
- Will the entitlement offer fully subscribe, or will there be a significant shortfall requiring board placement?
- How effectively can Adherium scale patient onboarding to meet its December 2025 target?
- What impact will the discounted issue price have on the company’s share price and investor sentiment post-offer?