InhaleRX Targets $247,668 via 9.9 Million New Shares at 2.5 Cents Each

Context of the Capital Raise

InhaleRX Limited (ASX, IRX), a biotechnology company focused on inhaled pharmaceuticals, has launched a non-renounceable entitlement offer aimed at raising up to $247,668. The offer invites eligible shareholders to subscribe for one new share for every 22 shares held at an issue price of 2.5 cents per share. Additionally, for every two new shares subscribed, shareholders will receive one free attaching option exercisable at 4.2 cents, valid for two years.

This capital raising is part of a broader funding strategy that includes a concurrent placement targeting professional and sophisticated investors to raise up to $750,000. The combined proceeds will support InhaleRX's ongoing working capital needs and cover the costs associated with the offers.

Offer Mechanics and Shareholder Impact

The entitlement offer is non-renounceable, meaning shareholders cannot trade their rights. This structure ensures existing shareholders have the opportunity to maintain their proportional ownership and avoid dilution from the placement. However, shareholders who choose not to participate will see their holdings diluted as the total shares on issue increase from approximately 218 million to nearly 258 million post-offer and placement.

The new options issued as part of the offer are not listed on the ASX but provide potential upside if exercised. Should all options be exercised, the company could receive an additional $1.09 million in funds, although there is no certainty this will occur.

Strategic Use of Funds and Risks

Funds raised will primarily be allocated to general working capital, supporting the company’s clinical development programs and operational expenses. InhaleRX is currently advancing clinical trials for its inhaled drug candidates, including IRX-616a and IRX-211, targeting respiratory conditions.

Investors should note the speculative nature of the investment, with key risks including the success of clinical trials, regulatory approvals from authorities such as the FDA and EMA, and the company’s ability to raise further capital if needed. Market conditions and regulatory changes also pose uncertainties that could impact the company’s progress and share price.

Governance and Shareholder Information

The offer is not underwritten, placing the onus on shareholder participation to reach the targeted raise. The company has disclosed substantial shareholders and director holdings, with no shareholder expected to exceed 19.9% ownership post-offer. Continuous disclosure obligations remain in place, with recent announcements detailing trial progress and corporate updates.

Eligible shareholders in Australia and New Zealand can participate, with the offer opening on 5 December 2025 and closing on 17 December 2025. The company encourages shareholders to seek professional advice before participating.