Noxopharm Ltd (ASX:NOX) has signed an At-the-Market Subscription Agreement (ATM) with Acuity Capital, providing access to up to $5 million in standby equity capital over a 5-year term to July 31, 2031.
Under the agreement, Noxopharm has full discretion over whether to draw on the facility, the maximum number of shares issued, the minimum issue price, and the timing of any subscriptions. The company is not required to use the ATM and can terminate it at any time without cost or penalty.
The facility does not restrict it from raising capital through other methods at any time.
If the company elects to utilise the ATM, it can set an issue price floor at its sole discretion, with the final issue price calculated as the greater of the nominated floor price and up to a 10% discount to a volume weighted average price (VWAP) over a period chosen by Noxopharm.
As security for the ATM, Noxopharm has agreed to place 15,000,000 fully paid ordinary shares at nil cash consideration to Acuity Capital. Upon early termination or maturity, Noxopharm may buy back and cancel those shares for no cash consideration, subject to shareholder approval.
R&D rebate bolsters cash position
Separately, Noxopharm has received a $2,806,583.03 refund under the Australian Government’s Research and Development Tax Incentive scheme for eligible expenditure during FY2025.
Noxopharm CEO Dr Gisela Mautner said: “We have made substantial progress over the past 12 months, and this R&D rebate helps strengthen our cash position as we continue to build upon the success of our HERACLES clinical trial and develop our Sofra™ drug candidates.
“We are now laying the groundwork for our next-phase clinical trials, as well as looking to deepen existing external stakeholder collaborations and develop new ones following the recent publication in Nature Immunology of the groundbreaking science underlying the Sofra platform.
“Cutaneous lupus (CLE) is our first shot on goal before we move into other chronic inflammatory diseases. It is an incurable chronic disease, meaning that patients would potentially need to use SOF-SKN on an ongoing basis to help relieve their symptoms. The global CLE market is worth more than US$3.3 billion and is expected to grow significantly over the coming years.”