Pathkey.AI Targets $3.4M Capital Raise via Rights Issue and Placement at $0.012 Share Price

Capital Raising Overview

Pathkey.AI Ltd, an emerging player in the artificial intelligence sector, has launched a pro rata non-renounceable rights issue to raise up to $920,517. Eligible shareholders can subscribe for one new share for every four shares held at a price of $0.012 per share. The offer opens on 12 December 2025 and closes on 5 January 2026, with fractional entitlements rounded down.

Alongside this rights issue, the company has secured firm commitments for a $2.5 million placement to sophisticated and professional investors, priced at the same $0.012 per share. This placement will be conducted in two tranches, with the second tranche subject to shareholder approval at an upcoming general meeting.

Strategic Use of Funds

The funds raised from these capital initiatives are earmarked for several key growth areas. Approximately 35% will be invested in enhancing Pathkey’s AI engine and its TrialKey platform, focusing on ingesting additional datasets and improving predictive accuracy. Another 27% is allocated to scaling commercial activities, including expanding business development and industry engagement efforts.

Additionally, the company plans to dedicate around 16% of the proceeds to pursue acquisition opportunities within the adjacent AI sector, signaling an ambition to broaden its technological and market footprint. The remainder will support working capital and cover costs associated with the offer.

Impact on Shareholders and Capital Structure

Shareholders who do not participate in the rights issue should anticipate dilution of approximately 20% relative to their current holdings. The company’s capital structure will expand significantly if the offer and placement are fully subscribed, with shares on issue increasing from approximately 307 million to over 400 million post-offer, and potentially nearing 600 million following shareholder approvals for additional securities.

Director Damon Rasheed has confirmed his intention to participate in the rights issue, committing at least $25,000. Meanwhile, non-executive director Shannon Robinson is set to receive options as part of a director incentive plan, subject to shareholder approval.

Risks and Considerations

Pathkey.AI underscores that investment in the company remains speculative, highlighting risks including intellectual property protection, competitive pressures, reliance on key personnel, and potential business interruptions. The offer document also notes the usual market and economic risks that could impact share price and company performance.

Importantly, the rights issue is non-renounceable, meaning shareholders cannot trade their rights. Any entitlements not taken up will form a shortfall offer, with allocations at the discretion of the board and lead manager, GBA Capital Pty Ltd.

Looking Ahead

As Pathkey.AI moves forward with this capital raising, market participants will be watching closely for shareholder uptake and the outcome of the placement approval. The company’s ability to execute on its AI platform enhancements and acquisition strategy will be critical to delivering on its growth ambitions in a competitive and rapidly evolving sector.