How Will BCAL’s $10M Convertible Note Propel Cancer Test Commercialisation?

Strategic Capital Raise to Support Growth

BCAL Diagnostics Limited (ASX, BDX), an Australian biotech company specialising in early multi-cancer detection, has announced the establishment of a $10 million convertible note facility. This funding mechanism is designed to bolster the company’s working capital and underpin its commercialisation strategy as it advances innovative, non-invasive cancer detection tests.

With $5 million already firmly committed, BCAL is positioned to draw on this capital to meet upcoming clinical and market milestones. The facility’s finalisation is contingent on shareholder approval at the company’s Annual General Meeting scheduled for 26 November 2025, after which the notes are expected to be issued within 30 days.

Favourable Terms Reflect Confidence

The convertible notes carry a 10% per annum interest rate, capitalised annually, and mature two years from issue. Investors have the option to convert their notes into ordinary shares at a discount to the 28-day volume weighted average price, with a 20% discount if conversion occurs within one year and 25% thereafter. The conversion price is capped at a maximum of A$0.30, providing a balance between investor upside and shareholder dilution control.

Importantly, the notes are secured by first-ranking security over all company assets, underscoring the company’s commitment to transparency and investor protection. BCAL also retains the right to redeem up to 100% of the notes at any time, subject to conversion rights, offering flexibility in managing its capital structure.

Advancing Cancer Detection Innovation

CEO Shane Ryan emphasised the strategic significance of this facility, stating it provides vital capital flexibility at a pivotal growth stage. BCAL’s focus remains on delivering its BREASTEST plus™ test, a non-invasive screening tool designed to improve breast cancer detection in women with dense breast tissue, alongside its licensed pancreatic and ovarian cancer blood tests from ClearNote Health Inc.

This capital injection is expected to accelerate BCAL’s commercialisation pathway, enabling the company to expand its pipeline of high-value cancer detection tests and strengthen its position in the competitive biotech diagnostics landscape.

Looking Ahead

As BCAL moves towards shareholder approval and subsequent fund deployment, investors will be watching closely to see how effectively the company translates this financial backing into tangible clinical and commercial progress. The convertible note facility not only provides immediate financial support but also signals confidence in BCAL’s long-term growth prospects.