Neurizon Therapeutics (ASX: NUZ) has completed its Entitlement Offer, raising $5.88 million through the issue of 73.5 million new shares at $0.08 per share. The capital raising saw strong participation from eligible shareholders, with oversubscription demand reinforcing investor confidence as the clinical-stage biotechnology company prepares for first patient dosing in the HEALEY ALS Platform Trial targeted for Q1 CY2026.
The non-renounceable entitlement offer, which closed on 21 January 2026, provided eligible shareholders the opportunity to acquire two new shares for every five held as at the 30 December 2025 record date. Proceeds will support regulatory, manufacturing and operational activities required to advance NUZ-001, the company’s lead drug candidate for amyotrophic lateral sclerosis (ALS) treatment.
Entitlement offer breakdown
The pro-rata structure of the capital raising allowed existing shareholders to maintain their proportional ownership while providing the company with funding certainty ahead of its critical clinical milestone. Eligible shareholders applied for 59.5 million shares under their entitlements, with an additional 14.0 million shares sought through the oversubscription facility.
| Allocation Type | Shares | Proceeds | % of Total Issued |
|---|---|---|---|
| Eligible shareholder applications | 59,524,761 | $4.76M | 81.0% |
| Oversubscription applications | 13,983,956 | $1.12M | 19.0% |
| Total issued | 73,508,717 | $5.88M | 100% |
| Shortfall shares available | 140,807,596 | $11.26M | N/A |
The company retains the right to place the shortfall shares to new or existing investors within three months of the offer’s close, at a price no less than $0.08 per share. This provides capital flexibility without immediate dilution impact on participating shareholders.
Key timeline milestones:
- Record Date: 30 December 2025
- Offer closed: 21 January 2026
- New shares issue: 29 January 2026
- Trading commences: 30 January 2026
Oversubscription demand of $1.12 million signals active shareholder engagement, with investors seeking exposure beyond their pro-rata entitlements. The shortfall placement optionality provides Neurizon with additional capital capacity if required to support clinical development activities, while maintaining pricing discipline at the $0.08 offer level.
What is an entitlement offer and why it matters for biotech funding
An entitlement offer provides existing shareholders with the right to purchase additional shares in proportion to their current holdings. Shareholders receive one entitlement for each share they own, with each entitlement representing the right to subscribe for new shares at a specified ratio and price.
In Neurizon’s case, the 2-for-5 structure meant shareholders holding 1,000 shares could acquire 400 new shares at $0.08 each, investing $32 to maintain their ownership percentage. Entitlements were non-renounceable, meaning shareholders could not sell or transfer their rights to other investors.
Participants could only accept, partially accept, or decline their entitlement. Biotechnology companies favour entitlement offers because they prioritise existing shareholders and provide pro-rata fairness.
Unlike placements, which typically target institutional or sophisticated investors, entitlements give all eligible shareholders equal opportunity to participate. This approach demonstrates management’s commitment to shareholder treatment, particularly relevant when companies face potential dilution from ongoing capital requirements during multi-year clinical development programmes.
The structure allows retail investors to maintain their proportional stake in the company without requiring on-market purchases at potentially higher prices. For companies like Neurizon progressing through capital-intensive clinical trials, entitlement offers balance the need for funding with equitable access for the existing shareholder base.
Funds earmarked for HEALEY ALS Platform Trial execution
Proceeds from the Entitlement Offer will be directed toward regulatory activities, manufacturing preparation and operational requirements ahead of NUZ-001’s entry into the HEALEY ALS Platform Trial. The company confirmed it remains fully funded to execute and complete its participation in the trial, with the capital raising strengthening its balance sheet and providing operational flexibility.
Management maintains its target of commencing first patient dosing in Q1 CY2026, with the funding supporting activities across three key workstreams: regulatory submissions and approvals required for trial commencement, drug substance manufacturing and quality assurance processes, and clinical operations infrastructure to support patient recruitment and data management.
“We are grateful for the strong support shown by our shareholders through the Entitlement Offer, which reinforces confidence in Neurizon’s strategy, execution discipline and long-term vision. Importantly, as we have consistently communicated to the market in prior announcements, Neurizon remains fully funded to execute and complete its participation in the HEALEY ALS Platform Trial. The proceeds from this Entitlement Offer further strengthen our balance sheet and provide additional flexibility as we progress regulatory, manufacturing and operational activities. The Board remains firmly focused on disciplined delivery, capital stewardship and urgency of execution, as we work to advance NUZ-001 through the HEALEY trial and pursue meaningful, patient-centred outcomes for people living with ALS and other neurodegenerative diseases,” said Sergio Duchini, Chairman of the Board and Non-Executive Director at Neurizon.
Clarity on capital allocation removes near-term funding uncertainty, a critical consideration for investors evaluating pre-revenue biotechnology companies navigating complex regulatory and clinical pathways. The confirmation that existing resources, combined with the entitlement offer proceeds, provide adequate runway to the pivotal HEALEY trial milestone reduces execution risk during the company’s most material value inflection point.
NUZ-001 and the HEALEY ALS Platform Trial
NUZ-001 is Neurizon’s investigational drug candidate targeting amyotrophic lateral sclerosis, the most common form of motor neurone disease. The compound has completed preclinical development and is advancing toward clinical validation through the HEALEY ALS Platform Trial, a collaborative, multi-arm trial structure designed to evaluate multiple potential ALS therapies simultaneously.
Platform trials differ from traditional single-drug studies by testing several investigational treatments within a shared control framework. This approach accelerates development timelines and improves statistical efficiency by allowing continuous patient recruitment across multiple treatment arms.
For companies like Neurizon Therapeutics (ASX: NUZ), participation in the HEALEY trial provides access to established clinical infrastructure, regulatory pathways and patient populations, reducing the capital burden of conducting standalone Phase II studies. ALS is a progressive neurodegenerative condition affecting motor neurons in the brain and spinal cord, leading to muscle weakness, paralysis and respiratory failure.
Current approved therapies provide modest survival benefits, creating urgent demand for novel therapeutic approaches.
NUZ-001 development pathway:
- Investigational status: NUZ-001 is not approved for commercial use in any jurisdiction and remains under clinical investigation.
- Clinical development stage: The compound is transitioning from preclinical validation to first-in-human dosing within the HEALEY Platform Trial framework.
- Trial commencement timeline: First patient dosing is targeted for Q1 CY2026, subject to completion of regulatory, manufacturing and operational readiness activities.
The HEALEY trial structure offers Neurizon a capital-efficient route to generate clinical proof-of-concept data. Positive results demonstrating safety and efficacy signals could support advancement to pivotal registration studies, while the collaborative trial design provides comparative data against other investigational therapies and standard-of-care treatments.
What comes next for Neurizon shareholders
With the Entitlement Offer secured, management attention shifts to operational execution across regulatory submissions, drug manufacturing readiness and clinical trial preparations. The company confirmed its Q1 CY2026 dosing target remains on track, providing investors with a defined timeline to monitor progress against stated milestones.
Neurizon retains discretion to place the 140.8 million shortfall shares within three months of the offer’s close, at a minimum price of $0.08 per share. Any shortfall placement will be allocated based on factors including investor profile, fund size, likelihood of long-term shareholding and maintenance of an active trading market.
This provides the company with optionality to access additional capital if clinical development activities require accelerated investment, or to broaden its institutional shareholder base ahead of key data readouts.
Near-term milestones to track:
- Progression of regulatory submissions required for HEALEY trial participation
- Completion of drug substance manufacturing and quality release for clinical use
- Commencement of first patient dosing in Q1 CY2026
- Potential shortfall share placement within three months of offer close
Management’s stated focus on disciplined delivery and capital stewardship establishes accountability benchmarks for operational performance. The confirmed funding position removes capital raising risk as a near-term distraction, allowing the company to concentrate resources on clinical execution during the critical lead-in to its first human dosing milestone.
Investors can assess progress through quarterly updates on regulatory activities, manufacturing timelines and patient recruitment activities once the HEALEY trial initiates. The clarity provided on funding adequacy and operational readiness positions shareholders to evaluate management’s ability to deliver on its commitments as NUZ-001 transitions from preclinical candidate to clinical-stage asset with potential proof-of-concept data generation.
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