InhaleRx Issues 17.1M Shares at 2.5 Cents in $1M Capital Raise

Capital Raise Progress

InhaleRx Limited (ASX – IRX), an Australian clinical-stage drug developer, has taken a significant step forward in its ongoing capital raise, issuing 17.1 million ordinary shares at 2.5 cents apiece. This initial tranche has generated $427,500 before costs, contributing to a broader capital raise effort targeting approximately $1 million through a combination of placements and entitlement offers.

The placement is structured in two tranches, with the first tranche of 24 million shares raising $600,000 under the company's existing placement capacity. The second tranche, comprising 6 million shares, awaits shareholder approval. Alongside the shares, investors receive attaching options exercisable at 4.2 cents, valid for two years, pending shareholder approval. This option structure aims to provide additional upside potential for investors while supporting the company’s funding needs.

Strategic Investor Participation

Notably, InhaleRx’s director Ron Wise has personally invested $35,000, subscribing for 1.4 million shares, a move that typically signals confidence from management in the company’s prospects. However, this subscription is also subject to shareholder approval, reflecting governance standards and regulatory compliance under ASX Listing Rules.

Peak Asset Management Pty Ltd acted as lead manager for the placement, targeting professional and sophisticated investors. Peak will also receive additional placement options as part of its remuneration, subject to shareholder approval, aligning their interests with the company’s future performance.

Funding Clinical Innovation

The capital raised is earmarked to accelerate development of InhaleRx’s pipeline of inhaled therapies, including IRX-211 for breakthrough cancer pain, IRX-616a for panic disorder, and SRX-25 targeting treatment-resistant depression. These programs leverage rapid-onset inhaled delivery methods, aiming to address significant unmet needs in pain management and mental health sectors.

InhaleRx has secured a funding facility of up to $38.5 million to support these clinical-stage projects, with regulatory strategies focused on expedited U.S. FDA pathways such as the 505(b)(2) route. This approach could potentially shorten time to market and reduce development costs, enhancing the commercial viability of their therapies.

While the capital raise is a positive development, the company still awaits shareholder approval for certain share issuances and options, which will be pivotal in finalising the full $1 million raise. Investors will be watching closely for the outcomes of the upcoming general meeting scheduled for January 2026.