Bio-Gene Technology Limited has completed the second tranche of its share placement, securing approximately A$2.46 million and issuing unlisted options to investors and its lead manager.
- Completion of Tranche 2 placement raising A$2.46 million before costs
- Shareholder approval secured at July 14 extraordinary general meeting
- Issuance of 55 million unlisted options exercisable in 2028 and 2030
- Options granted to placement investors and lead manager
- Cleansing notice confirms compliance with Corporations Act disclosure requirements
Capital Raise Milestone
Bio-Gene Technology Limited (ASX – BGT), an Australian biotech company focused on innovative bio-insecticides, has successfully completed the second tranche of its previously announced share placement. Following shareholder approval at the extraordinary general meeting held on 14 July 2025, the company issued fully paid ordinary shares that raised gross proceeds of approximately A$2.46 million before costs.
Strategic Use of Options
In addition to the shares issued, Bio-Gene granted investors and the lead manager a substantial package of unlisted options; over 55 million each for two separate series. These options carry exercise prices of 3.4 cents and 4.6 cents, expiring in May 2028 and May 2030 respectively. This long-dated option structure provides investors with extended upside potential, aligning their interests with the company’s growth trajectory over the coming years.
Regulatory Compliance and Transparency
The announcement also included a cleansing notice under section 708A(5)(e) of the Corporations Act 2001, confirming that the shares were issued without the need for further disclosure and that Bio-Gene has complied with all relevant disclosure obligations. This transparency reassures investors that the capital raising was conducted within regulatory frameworks, maintaining market integrity.
Positioning in Bio-Insecticides Market
Bio-Gene’s unique bio-insecticide products, such as Flavocide® and Qcide®, address critical challenges in pest control by overcoming resistance and minimizing environmental and health impacts. The fresh capital injection is expected to support ongoing development and commercialisation efforts, although the company has not yet detailed specific plans for deploying the funds.
Looking Ahead
While the successful placement and option issuance mark a positive step for Bio-Gene’s financial footing, investors will be watching closely for updates on how the company leverages this capital to advance its product pipeline and market penetration. The extended option expiry dates suggest confidence in long-term growth, but also introduce potential dilution risks that shareholders will want to monitor.
Bottom Line?
Bio-Gene’s latest capital raise strengthens its runway, but the market awaits clarity on how this funding will accelerate its bio-insecticide ambitions.
Questions in the middle?
- How does Bio-Gene plan to allocate the A$2.46 million raised in this tranche?
- What milestones or commercial deals might trigger exercise of the long-dated options?
- How will the new shares and options impact existing shareholder dilution and control?