Hexima Faces Delisting Risk as Board Moves to Cut Costs and Return Capital

Background and Clinical Program Closure

Hexima Limited, a biotechnology company listed on the ASX, has formally addressed its shareholders at the 2025 Annual General Meeting, outlining a strategic pivot following disappointing results from its onychomycosis clinical trial. The trial, conducted in 2022, failed to meet expectations, prompting the Board to halt further investment in this program. This decision marks a significant turning point for Hexima, which has long relied on this development effort as its core value driver.

Following the passing of its former Chair, Professor Jonathan West, the company appointed Mr Geoffrey Kempler, who initially explored a back-door listing strategy involving an AI business. However, this plan was abandoned due to commercial and regulatory hurdles. In 2024, Hexima transferred ownership of its onychomycosis intellectual property to a company controlled by Professor Adrienne Clarke, retaining a 2% royalty on any future sales; a contingent asset with uncertain financial value.

Current Financial and Operational Position

As of the AGM, Hexima holds approximately $1.4 million in cash reserves. The company also maintains rights under a license agreement with Corteva Inc. to a protein library with potential anti-fungal and insecticidal applications. Corteva continues to fund this research, with Hexima entitled to milestone and royalty payments if commercial products emerge. Beyond these intellectual property interests, Hexima has no active operations and has been suspended from ASX trading for over a year, during which it has spent around $300,000 on compliance and listing-related expenses.

The shareholder base remains composed of long-term investors who have collectively contributed over $50 million since the company’s inception. While many acknowledge the clinical setbacks, there is a shared desire among shareholders to see the company’s affairs resolved responsibly.

Strategic Path Forward

The Board has proposed a significant return of capital, expected to be around $1 million, subject to shareholder approval at a general meeting anticipated in late January 2026. This move aims to preserve shareholder value by returning cash rather than continuing to incur costs on a suspended and inactive company.

Additionally, Hexima plans to undertake a small-holding buyback to tidy its shareholder register, reducing administrative overhead and simplifying the company’s structure. The Board will also review its size and composition to ensure cost-effectiveness as the company transitions through this phase.

To inform these decisions, Hexima intends to obtain independent valuation advice considering its cash position and contingent intellectual property interests. This will guide pricing for buybacks and decisions regarding the company’s future listing status.

Outlook and Longer-Term Considerations

While the primary clinical program has ended, the Board remains cautiously optimistic about residual value from its royalty agreements with Professor Clarke’s company and Corteva Inc. No further capital will be invested in development activities, with the immediate focus on cost preservation and delivering transparent outcomes for shareholders.

Looking ahead, the Board anticipates that, once shareholder numbers and obligations permit, Hexima may apply to delist from the ASX and adopt a simpler corporate structure. This would further reduce ongoing costs and complexity, aligning with the company’s streamlined operational status.

Shareholders are advised to seek professional tax advice regarding the implications of any capital return or buyback, as individual circumstances will vary.

Conclusion

Chair Geoffrey Kempler expressed gratitude to Hexima’s loyal shareholders for their patience and support over nearly two decades. The proposed measures aim to responsibly close this chapter while preserving the possibility of future upside from Hexima’s residual intellectual property interests.