Neurotech Secures $4M to Propel Paediatric Neurological Drug Trials
Neurotech International has locked in $4 million through a share placement to advance its promising paediatric neurological drug, NTI164. The raise, supported by both new and existing investors including company directors, aims to fund critical clinical and regulatory milestones.
- Binding commitments for ~$4 million placement secured
- Directors to participate with ~$250,000 subject to shareholder approval
- Placement shares issued at a 23.8% discount to recent VWAP
- Funds earmarked for NTI164 clinical and regulatory programs
- Taylor Collison Limited appointed as lead manager
Capital Raise to Fuel Clinical Progress
Neurotech International Limited (ASX – NTI), a clinical-stage biopharmaceutical company focused on paediatric neurological disorders, has announced binding commitments for a $4 million placement of new shares. This capital injection is designed to accelerate the development of NTI164, an oral cannabinoid therapy targeting conditions such as Autism Spectrum Disorder and PANDAS/PANS.
The placement attracted strong support from both existing and new institutional, professional, and sophisticated investors. Notably, all directors have elected to participate in the raise, collectively committing around $250,000, pending shareholder approval. This signals confidence from management in the company’s strategic direction and pipeline.
Details and Discounted Pricing
The company will issue approximately 286 million new shares at $0.014 each, representing a 23.8% discount to the 15-day volume weighted average price of $0.0184. The majority of shares will be issued under existing placement capacities, with director participation shares subject to shareholder approval. Taylor Collison Limited is acting as lead manager, receiving standard fees for their role in the transaction.
Strategic Use of Funds
Proceeds from the placement will primarily support the advancement of NTI164’s non-clinical toxicology studies and registration-enabling clinical trials. Additionally, funds will facilitate regulatory submissions and bolster general working capital. This financial boost comes at a pivotal time as Neurotech prepares for further clinical milestones and regulatory engagement in 2026.
NTI164 has already demonstrated promising results in Phase II/III trials for Autism Spectrum Disorder, showing statistically significant benefits and a strong safety profile. The company is also progressing clinical programs in related paediatric neurological conditions, including spastic cerebral palsy and Rett Syndrome.
Looking Ahead
With this capital raise, Neurotech is positioning itself to maintain momentum in a competitive and high-stakes biopharmaceutical landscape. The involvement of directors in the placement underscores internal confidence, while the discount pricing reflects a pragmatic approach to securing necessary funds swiftly.
Investors will be watching closely for shareholder approval outcomes and subsequent updates on NTI164’s clinical progress as the company moves into the new year.
Bottom Line?
Neurotech’s $4 million raise sets the stage for critical clinical milestones, but shareholder approval and trial outcomes will be key to sustaining investor confidence.
Questions in the middle?
- Will shareholders approve the director participation in the placement?
- How will the 23.8% discount impact Neurotech’s share price in the short term?
- What are the timelines and expected milestones for NTI164’s upcoming clinical programs?
