Biotron Launches $1.5M Rights Issue to Fund Sedarex Acquisition and Drug Development
Biotron Limited has launched a $1.5 million non-renounceable rights issue to fund its strategic acquisition of Sedarex Limited and support ongoing drug development programs. The capital raise follows shareholder approval and aims to diversify Biotron’s portfolio with a next-generation general anaesthetic.
- Non-renounceable rights issue to raise up to $1.5 million
- Acquisition of Sedarex Limited approved by shareholders
- SedRx general anaesthetic holds global patents with FDA and EMA regulatory support
- Funds to support Sedarex development, Biotron’s antiviral programs, and corporate costs
- Peak Asset Management leads the offer and commits to shortfall subscription
Strategic Capital Raise and Acquisition
Biotron Limited (ASX, BIT) has initiated a non-renounceable pro rata rights issue to raise approximately $1.5 million by issuing up to 508.8 million new shares at $0.003 each, accompanied by attaching options exercisable at $0.02. This follows the recent shareholder approval of the acquisition of Sedarex Limited, a private company holding global patents for SedRx, a next-generation general anaesthetic.
The rights issue, which opens on 26 November 2025 and closes on 12 December 2025, offers existing eligible shareholders the opportunity to subscribe for one new share for every three shares held, with the option to apply for additional shortfall shares. Peak Asset Management is leading the offer and has committed to subscribing for any shortfall, providing a financial backstop to the capital raising.
SedRx, A Next-Generation Anaesthetic with Regulatory Momentum
SedRx is a reformulated version of alfaxalone, the active ingredient in Althesin, a general anaesthetic that previously held significant market share in Europe. The new formulation replaces the problematic solubilising agent with an FDA-approved alternative, addressing safety concerns that led to Althesin’s withdrawal decades ago.
Clinical trials have demonstrated SedRx’s advantages over the current market leader, propofol, including improved cardiovascular stability, reduced respiratory depression, and better cognitive recovery post-surgery. The US Food and Drug Administration (FDA) has indicated support for an expedited 505(b)(2) regulatory pathway, while the European Medicines Agency (EMA) may offer an abridged approval process, potentially accelerating market entry.
Funding Allocation and Pipeline Diversification
Proceeds from the rights issue and a concurrent $1 million placement will be allocated to advancing SedRx’s regulatory approvals and development of new neuroscientific indications, as well as supporting Biotron’s existing antiviral programs, including its hepatitis B virus drug candidate. The funds will also cover patent costs, toxicology studies, commercialisation activities, and corporate overheads.
The acquisition and capital raising mark a pivotal diversification for Biotron, adding a late-stage clinical asset with a potentially faster path to market alongside its ongoing antiviral research. The company expects the combined funds to provide operational runway through to November 2026, contingent on achieving key milestones and securing additional funding thereafter.
Risks and Shareholder Impact
While the acquisition of Sedarex has been approved, it remains subject to satisfactory due diligence and completion conditions. The rights issue is highly speculative, with risks including regulatory approvals, clinical trial outcomes, future funding needs, and potential dilution for shareholders who do not participate.
Biotron’s financial statements highlight a material uncertainty regarding its ability to continue as a going concern beyond November 2026 without further capital. The company’s directors have committed to fully participate in the rights issue, signalling confidence in the transaction and future prospects.
Outlook
Biotron’s strategic move to acquire Sedarex and raise capital reflects a clear intent to broaden its therapeutic portfolio and accelerate commercialisation opportunities. Investors will be watching closely for completion of the acquisition, regulatory progress for SedRx, and the company’s ability to secure partnerships or additional funding to sustain its development programs.
Bottom Line?
Biotron’s rights issue and Sedarex acquisition set the stage for a transformative phase, but execution risks and funding needs remain critical watchpoints.
Questions in the middle?
- Will Biotron complete due diligence and finalize the Sedarex acquisition on schedule?
- How quickly can SedRx progress through regulatory pathways in the US and Europe?
- What are the prospects for Biotron securing strategic partnerships or additional funding beyond November 2026?