Biotron Limited (ASX: BIT) is undertaking a renounceable pro-rata entitlement offer to raise up to $2.7 million before costs. The offer is structured on a 1-for-1 basis, with new shares priced at $0.003 each. Proceeds will be used to support ongoing operations, including efforts to advance Biotron’s antiviral programs and explore potential commercialisation opportunities.
The offer is partially underwritten by Mahe Capital Pty Limited for $750,000. Eligible shareholders can apply for additional shares beyond their entitlement. The entitlement trading period begins on 5 March 2025, with acceptances closing on 19 March 2025.
Biotron’s lead antiviral drug, BIT225, is under development for treating viral infections, with ongoing research into its activity against HIV-1, Hepatitis C, SARS-CoV-2, and Influenza A. The company is seeking a strategic alliance or commercial pathway for BIT225 and has engaged US-based advisory group C14 to assist in this process.
Funds raised from the entitlement offer will be allocated towards commercialisation activities, patent renewals, ongoing research in the HBV program, and working capital. Directors intend to participate in the offer by taking up their full entitlements.
Biotron has cautioned that the investment remains speculative, citing risks such as the uncertainty of securing commercial partnerships, the high-risk nature of biotechnology research, and its history of financial losses. Shareholders who do not participate in the offer will experience dilution of up to 50%.
