iX Biopharma converts US$1.2 million debt to shares to preserve cash for US expansion

[SINGAPORE] Catalist-listed pharmaceutical company iX Biopharma has capitalised a A$1.7 million (US$1.2 million) debt through the issue of new shares, the firm announced on Monday (Oct 5).

The agreement with Australia-based private businessman Vincent Lee on Saturday aims to conserve the group’s cash resources as it accelerates its strategic expansion in the US.

Under the agreement, the company will allot and issue close to 2.7 million new shares for S$0.5627 each. This issue price represents the volume-weighted average price for trades done on the Singapore Exchange on Friday.

Lee, who is an existing shareholder, will see his stake in the company increase from about 0.19 per cent to 0.44 per cent of the enlarged issued share capital upon completion.

The board highlighted that preserving cash is vital for executing the group’s recent growth initiatives in the US.

iX Biopharma was recently awarded a US$41 million development contract by the US government to fund Wafermine, its patented sublingual ketamine wafer used for treating acute moderate to severe pain.

The firm is also building its commercial presence in the US pharmacy market by relocating manufacturing equipment from Australia.

While the exercise will not raise any proceeds, the company will benefit from a stronger balance sheet.

The company noted that the creditor’s decision to accept shares in lieu of a cash repayment reflects his “confidence in the group’s strategy and long-term prospects”.

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The new shares will be allotted under the general share issue mandate approved by shareholders during the annual general meeting in October 2025.

Shares of iX Biopharma ended at S$0.56, up 1.8 per cent or S$0.01, on Friday.