Neurizon redeems remaining 750,000 Obsidian convertible notes, clearing the way for a simpler capital structure
Neurizon Therapeutics (ASX: NUZ; OTCQB: NUZTF) has redeemed all remaining 750,000 convertible notes held by Obsidian Global GP, LLC (“Obsidian”) for US$915,750 (~A$1.31M), funded from existing cash reserves. No convertible notes remain on issue, removing the potential dilution from their conversion.
The redemption was undertaken in conjunction with the placement and share purchase plan announced separately on 2 November 2026.
Key facts from the announcement:
- Amount paid: US$915,750 (~A$1.31M)
- Notes redeemed: 750,000 convertible notes
- Notes remaining on issue: nil
- Funding source: the company’s existing cash reserves
Chief Executive Officer Dr Chris Bremer addressed the capital structure impact:
Dr Chris Bremer, Chief Executive Officer
“Redeeming the remaining convertible notes is an important step in simplifying Neurizon’s capital structure. With no convertible notes on issue, and the potential drawdown replaced by the placement and share purchase plan, our shareholders no longer face the potential dilution from note conversions…”
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Redemption progress: 1,750,000 of 3,575,500 notes now redeemed
A total of 1,750,000 convertible notes have now been redeemed, which the company describes as almost half of the 3,575,500 notes issued.
How the redemptions stack up
| Step | Notes | Detail | Cumulative | Investor impact |
|---|---|---|---|---|
| Issue, 27 February 2026 | 3,575,500 | Notes issued to Obsidian | n/a | Notes could convert into shares |
| Earlier redemption | 1,000,000 | Redeemed previously | 1,000,000 | Fewer notes outstanding |
| Latest redemption | 750,000 | US$915,750 (~A$1.31M) | 1,750,000 | No notes remain on issue |
Background to the Facility
Neurizon entered into the Convertible Securities and Security Placement Agreement with Obsidian (the “Facility”) in December 2025. The company says the Facility provides an important source of funding flexibility during a period of significant investment in its lead clinical program.
What convertible notes mean for shareholders
A convertible note is a debt-like funding tool that can convert into shares. When notes convert, new shares are issued, which can dilute the holding of existing shareholders.
By redeeming the notes for cash, Neurizon has removed that potential dilution from conversion. No notes remain that could convert.
The company’s lead drug candidate, NUZ-001, is being developed for ALS, the most common form of motor neurone disease, and the HEALEY ALS Platform Trial topline readout is expected in late Q2 CY2027. NUZ-001 is an investigational product and is not approved for commercial use in any jurisdiction.
HEALEY enrolment progress has been a key part of the funding story, with the expanded 240-participant trial advancing across 78 activated US sites without any change to the company’s funding requirements.
Drawdown scrapped, funding runway intact
The drawdown previously contemplated under the Facility following the company’s November 2026 Annual General Meeting (AGM) will not proceed. It is replaced by the placement and share purchase plan.
Neurizon has also withdrawn resolution 4 (“Approval to issue Convertible Notes to Obsidian Global GP, LLC (and/or its nominee(s))”) from the AGM.
The Facility has been retained as a flexible standby funding option. Neurizon will only consider using it if the Board believes it is in shareholders’ best interests.
Before seeking any shareholder approval for a further drawdown, the Board will consider all funding options available to it, including potential business development transactions, strategic partnerships and other financing opportunities.
Neurizon states it remains fully funded through to the HEALEY ALS Platform Trial topline readout, inclusive of one further drawdown under the Facility. That drawdown may not be required depending on the outcome of the share purchase plan and other funding opportunities.
Neurizon has also tapped a non-dilutive R&D facility secured against its R&D Tax Incentive rebate, a separate funding lever that sits alongside the retained Obsidian standby and supports the company’s stated position of being funded to the HEALEY readout.
The company describes the redemption as part of a broader capital management strategy designed to simplify its capital structure, strengthen its financial position and preserve funding optionality.
What happens next for Neurizon
Two stated milestones frame the period ahead:
- Facility drawdowns: none will be undertaken until at least April 2027, and any subsequent drawdown requires shareholder approval. The Board will consider all funding options before seeking such an approval.
- HEALEY ALS Platform Trial topline readout: expected in late Q2 CY2027, the milestone to which the company states it is funded.
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