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iX Biopharma Announces S\$6 Million Placement to Fund U.S. Government Contract

Key Points and Investor Highlights

• Proposed Placement: iX Biopharma Ltd. has entered into a placement agreement with Oversea-Chinese Banking Corporation Limited (OCBC) to raise at least S\$6,000,000 through a placement of new shares at S\$0.198 per share. There is an option to upsize the placement to raise additional proceeds, as agreed between the company and OCBC.
• Placement Structure: The placement is not underwritten and will be offered through an exempt offering targeting institutional and accredited investors. No prospectus will be issued, in accordance with Singapore’s Securities and Futures Act.
• Share Dilution: The new shares represent about 3.16% of current share capital and will dilute existing shareholders to about 3.06% of the enlarged capital, assuming minimum proceeds. No placement to directors or substantial shareholders unless SGX approval or shareholder consent is obtained.
• Pricing: The placement price represents a 7.1% discount to the volume-weighted average price of trades prior to the trading halt, indicating potentially attractive entry for new investors.
• Lock-Up Restrictions: The company has agreed not to issue, sell, or pledge shares (other than placement shares or specific exceptions) for 30 days after the placement agreement, protecting the market from further dilution during this period.
• Use of Proceeds: Proceeds will be used primarily to fund interim working capital requirements tied to a new U.S. Government Contract with the Defense Health Agency, as well as general corporate purposes. If proceeds exceed S\$6 million, up to S\$2 million may be used to repay group debts.
• Previous Fundraising: The company recently completed a private placement in October 2025, raising S\$6.4 million (with S\$4.75 million unutilised as of this announcement). Rights issue and warrants from 2024 are largely utilised, with S\$269,088 from warrants still outstanding.
• Mandate and Listing: Shares will be issued under the general mandate approved at the October 2025 AGM, within limits. Application for listing on Catalist (SGX-ST) will be made, and no director or substantial shareholder has an interest in the placement beyond their shareholding.
• Material Contract: The placement is directly tied to the execution of a major U.S. Government Contract, which operates on a cost-reimbursement basis. The company must incur significant upfront costs (e.g., Phase 3 clinical trials) before receiving reimbursements. This placement addresses the timing gap between costs and payments, reducing execution risk.

Details Investors Should Know

• Potential Price Sensitivity: The announcement of a major U.S. Government Contract and the associated placement to fund its execution could significantly impact the company’s financial outlook and share price. Successful project delivery may enhance future earnings and value.
• Risk Factors: The placement is subject to several conditions, including regulatory approval, fulfilment of representations and warranties, and no material adverse events. Shareholders should be aware that the placement may not complete if these are not met, which could affect liquidity and project execution.
• Transparency: The company commits to periodic announcements on the use of placement proceeds and detailed breakdowns in financial reports. Any material deviation from stated use will be disclosed.
• Liquidity Position: Even after recent fundraising, the company is strengthening its balance sheet further, demonstrating a conservative approach to funding and execution risk. This could bolster investor confidence.

Salient Terms of the Placement

• Placement Commission: OCBC will receive a commission of 3.5% on the placement price multiplied by the number of shares placed.
• Completion: Completion will occur one business day after receipt of SGX-ST’s listing notice or as otherwise agreed.
• Conditions: Multiple conditions for completion include regulatory approvals, absence of material adverse changes, and fulfilment of board resolutions. OCBC can terminate the agreement if conditions are not met.
• Lock Up: A 30-day lock-up period applies, preventing additional share issuance or related transactions except for specific exemptions.

Conclusion

iX Biopharma’s proposed S\$6 million placement represents a strategic move to fund a significant U.S. Government Contract, strengthen its balance sheet, and support project execution. The terms, pricing, and rationale indicate a potentially positive impact on future earnings and share value, especially as the company expands its international footprint. However, investors should monitor completion risks and subsequent deployment of funds.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell securities. Investors should exercise caution and consult their financial advisors before making investment decisions. The placement is subject to regulatory approvals and other conditions; actual outcomes may differ from those described. The author and publisher accept no liability for reliance on this information.

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