Algorae Pharmaceuticals Rewards Shareholders with Loyalty Options Offer
Algorae Pharmaceuticals has launched a Loyalty Options Offer, allowing eligible shareholders to purchase options at a nominal price, aiming to reward loyalty and support future growth funding.
- Non-renounceable pro-rata Loyalty Options Offer
- One option for every five shares at $0.001 each
- Exercise price set at $0.014, expiring December 2029
- Expected raise of approximately $337,679 before costs
- Directors committed to participate; offer not underwritten
Rewarding Shareholder Loyalty
Algorae Pharmaceuticals Limited (ASX, 1AI), an AI-driven pharmaceutical company, has announced a Loyalty Options Offer designed to acknowledge the ongoing support of its shareholders. Eligible investors will be entitled to purchase one Loyalty Option for every five shares held as of the record date, at a nominal price of $0.001 per option. This initiative not only rewards shareholders but also provides the company with a flexible mechanism to raise additional capital in the future.
Offer Mechanics and Terms
The Loyalty Options carry an exercise price of $0.014 and will expire on 1 December 2029. Upon exercise, each option converts into one fully paid ordinary share in Algorae. Notably, these options will not be listed on the ASX and are non-transferable, meaning shareholders must hold onto them until exercise or expiry. The offer is non-renounceable and pro-rata, ensuring that only current eligible shareholders can participate based on their holdings at 7, 00 pm AEDT on 27 November 2025.
Capital Raising and Strategic Implications
Through this offer, Algorae aims to raise approximately $337,679 before costs, which will bolster its financial position as it advances its dual-track strategy of AI-driven drug discovery and pharmaceutical commercialisation. The company’s proprietary AI platform, AlgoraeOS, and its commercial arm, AlgoraeRx, underpin this growth strategy. The funds raised via option exercises could provide vital capital flexibility without immediate dilution, aligning shareholder interests with the company’s long-term vision.
Board Participation and Offer Details
Directors David Hainsworth and Bradley Latham have committed to participate in the Loyalty Options Offer, signaling confidence in the company’s prospects. The offer is not underwritten, which introduces some risk regarding the total capital raised. Key dates include the record date on 27 November 2025, the opening of the offer on 2 December 2025, and the closing date on 15 December 2025. Shareholders will receive a prospectus and personalised entitlement forms to facilitate participation.
Looking Ahead
While the Loyalty Options Offer provides a clear path for shareholder engagement and potential capital injection, the ultimate impact will depend on uptake and subsequent exercise of options. Algorae’s approach reflects a balancing act between rewarding loyalty and maintaining financial agility as it navigates the competitive pharmaceutical landscape.
Bottom Line?
Algorae’s Loyalty Options Offer sets the stage for shareholder-aligned growth, but uptake and exercise will be key to unlocking its full potential.
Questions in the middle?
- What level of shareholder participation will the Loyalty Options Offer achieve?
- How might the exercise of options affect share dilution and capital structure?
- What milestones or developments could trigger option exercises before expiry?
