Memphasys’ Cost Cuts and Capital Raise Crucial Amid Commercialisation Push

Capital Raise and Investor Confidence

Memphasys Limited (ASX, MEM) has successfully completed a placement raising approximately $0.84 million at $0.003 per share, supported by both existing and new investors, including institutional participants. This capital injection underpins the company’s renewed commercialisation strategy focused exclusively on its patented Felix™ System, a novel bioseparation technology designed to improve assisted reproduction outcomes.

Alongside the placement, Memphasys has announced a non-renounceable rights issue to raise up to an additional $1.12 million, offering eligible shareholders the opportunity to participate in the company’s next growth phase. The placement price reflects a 36% discount to the recent volume-weighted average price, providing an attractive entry point while securing essential funding.

Operational Efficiency and Cost Rationalisation

In a decisive move to sharpen its commercial focus, Memphasys has slashed operating costs by approximately 40%, reducing expenses from $3 million to $1.8 million projected for calendar year 2026. These savings are being strategically redeployed to scale manufacturing capacity, build inventory of Felix™ cartridges, and improve gross margins with a target cost of less than $40 per cartridge.

This cost rationalisation signals a shift from broader R&D activities to a leaner, execution-driven approach aimed at delivering near-term revenues. The company’s leadership emphasizes that this disciplined focus is critical to transitioning from development to sustainable commercial operations.

Commercialisation Strategy and Market Expansion

Memphasys’ commercialisation strategy centres on two priorities, securing contracted sales through binding agreements in regions such as MENA and Turkey, and scaling production to meet growing demand while driving down costs. The recently expanded ITL agreement, now valued at A$390,000 and extended to Turkey, marks the company’s first contracted revenues from the European Union.

Further negotiations are underway in key markets including New Zealand, Japan, and India, with volume-based contracts expected to contribute to revenue in fiscal year 2026. Additionally, Memphasys is progressing regulatory approvals, including the CE Mark, to access the EU’s large assisted reproduction market.

Investor Sentiment and Outlook

The capital raise and cost-cutting measures have been well received by investors, reflecting confidence in Memphasys’ sharpened commercial focus and execution capabilities. The Board and executive team remain optimistic about converting their growing pipeline of agreements into meaningful revenues and establishing Felix™ as a global standard in sperm selection technology.

Chairperson Lindley Edwards highlighted the strategic nature of the capital raising and the company’s commitment to disciplined execution, positioning Memphasys for sustainable revenue growth and long-term shareholder value.