Invex Therapeutics has paired its proposed acquisition of Rekover Therapeutics with a $10 million equity raising to fund a Phase 2a multiple sclerosis study and its existing Exenatide programs. The biotech ended September with A$3.59 million in cash, with shareholder approval still required for the larger part of the transaction.
- Proposed Rekover acquisition funded entirely with shares and performance rights
- A$10 million placement priced at A$0.08 per share
- REVIVE Phase 2a study targets multiple sclerosis-related chronic optic neuropathy
- September-quarter operating cash outflow of A$425,000
- Expanded Exenatide Alzheimer’s research continues with Tessara Therapeutics
Rekover Deal Comes With A$10 Million Clinical Funding Plan
Invex Therapeutics Ltd (ASX:IXC) is moving to broaden its neurology pipeline beyond Exenatide, proposing to acquire New Zealand biotechnology company Rekover Therapeutics and fund its lead study with a A$10 million equity raising. The transaction would add nalfurafine and the planned REVIVE Phase 2a trial, which is designed to assess the drug in relapsing-remitting multiple sclerosis patients with chronic optic neuropathy.
The acquisition itself carries no cash consideration. Rekover shareholders would receive 45 million Invex shares and 91.25 million performance rights across three classes, with the rights tied to milestones for the REVIVE study and nalfurafine’s regulatory pathway. The proposal is the same transaction outlined in the Rekover acquisition, which earlier coverage described as adding a planned Phase 2a multiple sclerosis program to Invex’s portfolio.
Placement Requires Shareholder Approval
Invex has secured firm commitments for an initial placement of 11.25 million shares at A$0.08 each, raising A$900,000 before costs under its existing placement capacity. A further 113.75 million shares at the same price is subject to shareholder approval and would raise A$9.1 million, taking the combined proposed raise to A$10 million.
The proceeds are intended principally for the REVIVE study and continued development of Invex’s existing Exenatide assets. Completion of the acquisition also depends on shareholder approval under section 611 item 7 of the Corporations Act and ASX Listing Rule 10.1, as well as an Independent Expert’s Report. A general meeting is expected in early December 2026, making that vote the next major gate for the expanded strategy.
September Cash Burn Remains Contained
Invex finished the September quarter with A$3.591 million in cash and cash equivalents, down from A$4.016 million three months earlier. Net operating cash outflow was A$425,000, compared with A$501,000 in the June quarter.
The quarter included no reported research and development payments, which Invex attributed to the timing of payments for its Tessara Therapeutics program. Administration and corporate costs rose to A$234,000 from A$135,000, partly reflecting transaction costs and the ongoing costs of maintaining an ASX listing. The company reported A$44,000 in payments to related parties, covering director fees, consulting fees and registered office fees.
Tessara Program Tests Exenatide Combinations
Alongside the proposed expansion, Invex said its enlarged preclinical program with Tessara is evaluating Exenatide and other GLP-1 receptor agonists in Tessara’s human induced pluripotent stem cell-derived three-dimensional ADBrain Alzheimer’s model. Earlier work in the program reported statistically significant improvements across several disease-related biomarkers, including a potential neuroprotective effect against ferroptosis, an iron-dependent oxidative cell-death pathway.
The expanded work is intended to compare Exenatide directly with a current GLP-1 agonist, test combinations against approved symptomatic Alzheimer’s treatments and examine combinations with naturally occurring factors. These remain preclinical assessments: the filing does not report clinical efficacy or a regulatory outcome. The program builds on the expanded Tessara research, previously reported as targeting Exenatide combinations and ferroptosis mechanisms in Alzheimer’s disease.
Bottom Line?
Invex’s next phase depends on converting a proposed share-funded acquisition and capital raise into an approved transaction, while the reported cash runway is based on a low-spend quarter that may not capture upcoming clinical and transaction costs.
Questions in the middle?
- Will shareholders approve the Rekover acquisition and the larger A$9.1 million placement at the expected December meeting?
- When will the REVIVE Phase 2a study begin, and what milestones will trigger the proposed performance rights?
- How will Invex’s cash burn change once REVIVE and the expanded Tessara research move into their next stages?