Nexalis Signs $53M Facility with Point8 Capital to Replace Debt

New Funding Partnership Replaces Previous Debt Facility

Nexalis Therapeutics (ASX:NX1) has secured a new $53 million funding facility with Sydney-based Point8 Capital, stepping in to replace the Linlithgow Family Office (LFO) debt arrangement that has now been cancelled. The move is critical to maintaining momentum in Nexalis’ clinical programs after LFO permanently withdrew its remaining commitment, leaving the company with limited access to previously expected funds.

The Point8 facility is structured as three distinct sub-facilities, each dedicated to one of Nexalis’ core clinical assets: IRX-211 for breakthrough cancer pain, IRX-616a targeting panic disorder, and SRX-25 aimed at treatment-resistant depression. This approach allows for targeted drawdowns aligned with the progress of each program.

Nexalis’ board had been actively engaging with LFO to secure outstanding funding but prudently sought alternative sources amid uncertainty. The new facility carries a 15% annual interest rate, capitalised monthly, and includes a general security deed over Nexalis’ assets. As part of the deal, Point8 will receive 49.35 million options exercisable upon each program reaching Phase 3 readiness, allowing the lender to share potential upside without immediate dilution.

Clinical Programs and Funding Allocation

The facility allocates up to $15.5 million for IRX-211, $16.1 million for IRX-616a, and $22 million for the two-phase SRX-25 program. Funds are strictly earmarked for clinical trial costs, including payments to contract research organisations, drug manufacturing, animal toxicology studies, and associated vendor expenses.

This targeted funding structure reflects Nexalis’ strategy to advance rapid onset therapies in areas of unmet medical need, with a focus on efficient regulatory pathways such as the FDA’s 505(b)(2) route. The company’s IRX-211 program recently advanced to Phase 2 with the first patient screened in a pivotal trial first patient screened, while IRX-616a has commenced Phase 1 dosing for panic disorder Phase 1 trial dosing.

Operational Impact and Market Reinstatement

Pending finalisation of the Point8 facility, Nexalis has temporarily suspended study orders for IRX-211 and IRX-616a with its contract research organisation iNGENū CRO Pty Ltd, signalling a cautious operational pause until funding is secured. The company expects to reinstate these orders once the new facility is operational.

Following the announcement of the new funding arrangement, the ASX lifted its suspension on Nexalis shares, allowing trading to resume immediately. This reinstatement follows a voluntary trading halt requested by Nexalis to manage continuous disclosure obligations during the funding transition voluntary suspension.

The inclusion of equity participation via options to Point8 introduces a hybrid element to the funding, balancing Nexalis’ need for non-dilutive capital with investor incentives tied to clinical milestones. However, the final terms remain subject to shareholder approval and execution of definitive agreements.