Noxopharm Secures $5M ATM Agreement with Acuity Capital for Five Years

Flexible Capital to Fuel Innovation

Australian clinical-stage biotech company Noxopharm Limited (ASX:NOX) has formalised an At-the-Market (ATM) subscription agreement with Acuity Capital, providing a standby equity capital facility of up to $5 million over the next five years. This arrangement grants Noxopharm the flexibility to raise funds at its discretion, without any mandatory drawdowns or timing constraints.

The ATM facility is designed to offer Noxopharm a strategic financial tool to support its ongoing research and development activities, particularly its proprietary Sofra technology platform. Sofra focuses on novel treatments for inflammatory and autoimmune diseases, as well as oncology, leveraging short nucleic acid sequences to modulate immune responses.

Terms That Prioritise Control

Under the agreement, Noxopharm retains full control over if, when, and how much capital to raise through the ATM. The company can set a minimum issue price floor and determine the timing of share issuances, with the final price calculated as the greater of the floor or up to a 10% discount to a volume-weighted average price over a chosen period.

Importantly, the facility imposes no restrictions on Noxopharm’s ability to pursue other capital raising methods, nor does it require the company to utilise the ATM at all. This flexibility is complemented by the ability to terminate the agreement at any time without penalty.

Security and Shareholder Considerations

As security for the ATM, Noxopharm has placed 15 million fully paid ordinary shares with Acuity Capital at no cash consideration. These shares are issued under the company’s existing capacity and may be bought back and cancelled by Noxopharm upon early termination or maturity of the facility, subject to shareholder approval.

This arrangement balances the need for standby capital with shareholder interests, ensuring that any dilution is managed carefully and transparently.

Strategic Implications for Noxopharm

The biotech sector is capital intensive and often requires nimble funding solutions to advance clinical programs. By securing this ATM facility, Noxopharm positions itself to respond quickly to development opportunities or unforeseen expenses without the delays or uncertainties of traditional capital raises.

With the Sofra platform targeting a rapidly growing global market for autoimmune and immuno-oncology therapies; projected to reach hundreds of billions of dollars in the coming decade; this financial flexibility could prove pivotal in accelerating Noxopharm’s pipeline progress and commercial prospects.