Paradigm Biopharma Raises $21.375 Million Through Oversubscribed SPP

Oversubscribed Share Purchase Plan Boosts Funding

Paradigm Biopharmaceuticals Ltd (ASX:PAR) has raised approximately $7.375 million through an oversubscribed Share Purchase Plan (SPP), significantly exceeding its initial $2 million target. This injection comes on top of a recently completed $14 million placement, bringing the total capital raised to about $21.375 million. The company’s decision to accept all valid SPP applications underscores strong backing from existing shareholders eager to support Paradigm’s late-stage drug development efforts.

Capital Raising Strengthens Balance Sheet Ahead of Key Milestones

The funds raised will reinforce Paradigm’s financial position as it advances the global Phase 3 PARA_OA_012 clinical trial for injectable pentosan polysulfate sodium (iPPS) in osteoarthritis. The company is targeting an interim analysis of this pivotal trial in the third quarter of 2026, a crucial inflection point that could shape regulatory and commercial pathways. The capital also supports preparatory activities for a New Drug Application (NDA), positioning Paradigm for potential regulatory submissions.

Managing Director Paul Rennie highlighted the strong shareholder confidence reflected in the oversubscription, noting the importance of providing retail investors access on terms comparable to institutional participants. The $0.17 issue price for SPP shares represented a modest 2.5% discount to the five-day volume weighted average price (VWAP) leading up to the closing date.

Attaching Options and Upcoming Shareholder Vote

Shareholders participating in the SPP will also receive attaching options on a one-for-one basis, subject to approval at the forthcoming Extraordinary General Meeting (EGM). This feature offers additional potential upside for investors but introduces some uncertainty pending the shareholder vote. Settlement and allotment of SPP shares are expected around 30 May 2026, with trading commencing on 1 June 2026.

Context of Ongoing Clinical Investment

Paradigm’s recent capital raising builds on a series of funding rounds supporting its Phase 3 trial, which has passed key patient enrolment milestones. The company’s focus remains on demonstrating the anti-inflammatory and tissue regenerative properties of iPPS for osteoarthritis, a condition with significant unmet medical needs. This latest raise provides the financial runway to maintain momentum through the interim analysis and beyond, while managing operational costs associated with a global clinical program.