Noxopharm Extends $2.6M Convertible Notes to 2027, Adds $1.25M Loan

Convertible Notes Extension

Noxopharm Limited, the clinical-stage biotech innovator, has announced a key financial restructuring move with its convertible noteholders agreeing to extend the maturity date of $2.6 million in notes to 2 January 2027. This extension, subject to shareholder approval at the upcoming AGM, provides the company with critical breathing room to manage its finances amid ongoing development activities.

Alongside the extension, noteholders will receive accrued interest totaling $327,000 in cash by January 2026, with further interest accruing daily until maturity. To incentivize continued support, Noxopharm is granting an additional 520,000 unlisted options to noteholders, maintaining alignment with the original terms.

Government R&D Tax Incentive Boost

The timing of this extension is strategic, enabling Noxopharm to access approximately $2.8 million in rebate funds from the Australian Federal Government’s Research and Development Tax Incentive Scheme for the fiscal year ending 30 June 2025. This injection is earmarked to support the company’s working capital needs, underpinning ongoing research and development efforts.

Additional Loan Funding from Chairman’s Entity

In a complementary move, Noxopharm has secured a $1.25 million unsecured loan from 4F Investments Pty Limited, an entity controlled by Chairman Fred Bart. The loan carries a 12% annual interest rate, consistent with the convertible notes, and interest will be capitalized daily until maturity.

The company intends to convert this loan into a convertible note, mirroring existing terms but remaining unsecured, pending shareholder approval. This conversion would include the issuance of 250,000 unlisted options, further aligning 4F Investments with other noteholders and ensuring no financial disadvantage to existing investors.

Strategic Implications

These financial arrangements highlight Noxopharm’s proactive approach to managing liquidity and investor relations during a critical phase of clinical development. By extending note maturities and securing additional funding, the company is positioning itself to maintain momentum in its pipeline without immediate dilution or refinancing pressures.

However, the reliance on shareholder approval introduces an element of uncertainty, making the upcoming AGM a pivotal event for investors to watch closely.