Neurizon Raises $7.1M Placement, $17.1M Entitlement Offer, Plus $20M Convertible Note

Neurizon’s Strategic Funding Milestone

Neurizon Therapeutics Limited has announced a comprehensive $44 million funding package designed to underpin its participation in the HEALEY ALS Platform Trial, a pivotal Phase 2/3 clinical study for its lead candidate, NUZ-001. This funding is a significant endorsement of the company’s strategy and confidence in NUZ-001’s potential to address Amyotrophic Lateral Sclerosis (ALS), the most common form of motor neurone disease.

The package comprises a placement raising approximately $7.1 million through the issuance of new shares at $0.08 each, a 2-for-5 pro rata entitlement offer aiming to raise up to $17.1 million, and a $20 million convertible note facility with New York-based Obsidian Global GP, LLC. This multi-pronged approach balances immediate capital needs with long-term financial flexibility, minimizing dilution while extending Neurizon’s capital runway.

Backing the HEALEY ALS Platform Trial

The secured funds will fully finance Neurizon’s involvement in the HEALEY ALS Platform Trial, which is structured to accelerate the development of new ALS therapies by testing multiple drugs simultaneously within a shared infrastructure. The trial includes a 36-week Randomised Clinical Trial phase followed by a 36-week Active Treatment Extension phase, providing a robust framework to evaluate NUZ-001’s safety and efficacy in a larger patient population.

Participation in this adaptive trial places NUZ-001 alongside leading academic and industry programs, potentially fast-tracking regulatory review and approval. Neurizon’s Managing Director, Dr Michael Thurn, highlighted that this funding transforms the company’s position, enabling focused execution and data generation critical for advancing NUZ-001 through accelerated global regulatory pathways.

Convertible Note Facility, Flexibility and Alignment

The $20 million convertible note facility with Obsidian is structured to provide milestone-aligned funding over two years, allowing Neurizon to draw capital progressively as clinical and regulatory milestones are met. This arrangement offers operational flexibility and limits upfront dilution, a key consideration for shareholders. The facility also preserves the company’s ability to pursue alternative funding sources, including non-dilutive grants and partnering deals, enhancing strategic optionality.

Obsidian’s investment follows thorough due diligence and reflects confidence in NUZ-001’s late-stage clinical profile and potential for broader neurodegenerative disease applications. The facility includes conditions requiring shareholder approval and is secured by a general security agreement over Neurizon’s assets, underscoring the seriousness and structure of the commitment.

Broader Implications and Next Steps

Beyond ALS, Neurizon plans to deploy additional capital toward exploring NUZ-001’s potential across other neurodegenerative conditions such as Huntington’s Disease and Frontotemporal Dementia. This broader platform approach could position the company as a significant player in neurodegenerative therapeutics.

Shareholder approval is pending for key components of the funding package, including director participation in the placement and the convertible note facility terms. The company’s next critical milestones include dosing the first patient in the HEALEY ALS Platform Trial early in Q1 2026 and advancing regulatory and partnering initiatives globally.