Actinogen Medical Ltd (ASX:ACW, OTC:ATGGF) has secured approximately $4.77 million in additional funding after Forrest Capital Pty Ltd agreed to fully underwrite the exercise of the company’s remaining unlisted options.
The agreement comes as Actinogen approaches a potentially significant clinical milestone, with topline results from its pivotal XanaMIA Phase 2b/3 Alzheimer’s disease trial expected in November 2026.
Forrest Capital, a long-standing Actinogen shareholder, will underwrite 127.24 million outstanding ACWAP and ACWAO options carrying an exercise price of 3.75 cents.
If exercised, the options will generate $4.77 million for Actinogen, with the underwriting ensuring the company receives the full amount even if existing option holders do not exercise before the September expiry dates.
Cash runway extends beyond pivotal readout
Combined with Actinogen’s June-end cash balance of $16.7 million and an expected R&D tax incentive rebate next quarter, the additional proceeds are expected to provide the company with funding well beyond the upcoming XanaMIA results.
Chief financial officer Will Souter said the agreement provided certainty that the remaining option funding would be received by the end of September and secured the company’s cash runway until late calendar 2027 or early 2028.
Around 72.79 million options from the two tranches have already been exercised, generating approximately $2.73 million.
Any shares issued to Forrest or its nominees under the underwriting agreement are expected to be allotted on September 23, 2026. Forrest will receive an underwriting fee equal to 5% of the underwritten amount, plus GST and reasonable expenses.
November Alzheimer’s catalyst approaches
The funding strengthens Actinogen’s position as it approaches the final readout from XanaMIA, which is evaluating its lead drug candidate Xanamem in 247 patients with mild-to-moderate Alzheimer’s disease.
The 36-week, placebo-controlled study is assessing whether a daily 10-milligram dose of Xanamem can slow disease progression, with the internationally recognised Clinical Dementia Rating – Sum of Boxes (CDR-SB) serving as the primary endpoint.
The trial has completed recruitment and passed an independent Data Monitoring Committee safety and efficacy futility review, with final topline results expected in November.
Actinogen also reported strong participation in the trial’s open-label extension, with 89% of main-study participants choosing to continue immediately into the extension phase, where all participants receive active Xanamem treatment.
Targeting cortisol in the brain
Xanamem, also known as emestedastat, is designed to reduce elevated cortisol levels inside the brain by inhibiting the 11β-HSD1 enzyme, without interfering with the adrenal production of cortisol required for normal bodily function.
Actinogen is developing the once-daily treatment primarily for Alzheimer’s disease, while previous clinical work has also demonstrated activity in patients with depression and biomarker-positive Alzheimer’s disease.
The company has studied Xanamem in more than 500 volunteers and patients across eight clinical trials to date.