Patrys Raises $1.77M Via 3-for-4 Share Entitlement Offer at $0.001 Price
Patrys Limited has launched a fully underwritten entitlement offer to raise approximately $1.77 million, aiming to accelerate development and commercial activities around its deoxymabs program.
- Non-renounceable entitlement offer of 3 shares for every 4 held at $0.001 each
- One free-attaching share issued for every four shares subscribed
- Funds targeted at technical, manufacturing, and commercial development of deoxymabs
- Offer fully underwritten by Templar Corporate with director sub-underwriting
- Shareholder participation limited to Australia and New Zealand
Entitlement Offer Details and Structure
Patrys Limited (ASX, PAB), a biotechnology company focused on novel therapeutics, has announced a fully underwritten, non-renounceable entitlement offer to raise approximately $1.77 million. Eligible shareholders in Australia and New Zealand can subscribe for three new shares for every four shares they currently hold at a nominal price of $0.001 per share. Additionally, for every four shares subscribed, shareholders will receive one free-attaching share, effectively reducing the cost per share to $0.0008.
The offer is designed to strengthen Patrys’ balance sheet and provide capital to advance its lead program, deoxymabs, alongside other business development initiatives. The entitlement offer is fully underwritten by Templar Corporate Pty Ltd, with directors Peter Christie and Anton Uvarov committing to sub-underwriting agreements totaling $225,000, signaling strong insider confidence.
Strategic Use of Raised Funds
The proceeds from the entitlement offer will be allocated primarily towards technical work supporting partnering activities for deoxymabs, including a manufacturing review. This focus underscores Patrys’ intent to prepare the program for potential collaborations or licensing deals, a critical step in the biotech sector where partnerships can accelerate development and commercialisation.
Beyond deoxymabs, funds will support maintenance and enhancement of the company’s intellectual property portfolio, business development efforts, and evaluation of new therapeutic opportunities, particularly those targeting the NETosis pathway. Patrys is actively exploring diversification to mitigate risk and broaden its pipeline, which could appeal to investors seeking exposure to innovative biotech assets.
Market and Shareholder Implications
The entitlement offer’s non-renounceable nature means shareholders who do not participate will face dilution of their equity stake. This structure encourages existing investors to maintain or increase their holdings to avoid losing influence. The timetable extends from late July through August 2025, with shares expected to commence trading shortly after the offer closes.
Patrys’ board has also indicated ongoing efforts to reduce the company’s cash burn rate following a strategic review earlier this year, reflecting prudent financial management amid the capital raise. However, the company notes that budgets and forecasts remain subject to change based on operational outcomes and market conditions.
Outlook and Next Steps
With the entitlement offer fully underwritten, Patrys secures immediate funding to pursue its development and commercial goals. The success of this capital raise will be closely watched by investors as a barometer of shareholder confidence and the company’s ability to execute on its partnering strategy. The coming months will be critical as Patrys advances manufacturing assessments and engages potential partners for deoxymabs, potentially unlocking value beyond the current pipeline.
Bottom Line?
Patrys’ capital raise sets the stage for pivotal partnering moves, but shareholder uptake and pipeline progress will be key to watch.
Questions in the middle?
- Will shareholder participation meet expectations to avoid significant dilution?
- How soon can Patrys secure partnering agreements for deoxymabs following this funding?
- What new therapeutic opportunities might emerge from the company’s ongoing evaluations?
