Paradigm eyes $110m plus raise with shareholder loyalty offer

Paradigm Biopharmaceuticals has launched loyalty options and piggyback options offers which could potentially raise more than $110 million.

Paradigm has launched a loyalty options and piggybank options offer. Pic via Getty Images.

• Paradigm launches loyalty options and piggyback options offer to reward shareholders for support

• Offer has potential to raise more than $110 million for the company

• Paradigm set to start phase III trial of PARA_OA_012 to treat knee OA in Q1 CY25

 

Special Report: Late-stage drug development company Paradigm Biopharmaceuticals has launched a loyalty options offer and piggyback options offer which could potentially raise more than $110 million.

Paradigm Biopharmaceuticals (ASX:PAR)  said the offers were designed to reward shareholders for their ongoing support and provide an opportunity for further participation in the company’s growth as it prepares to start a pivotal phase III trial.

Eligible shareholders will be issued one loyalty option for every four fully paid ordinary shares held as of 5pm (AEDT) on February 7, 2025 for nil consideration.

The loyalty options give shareholders the right to buy additional shares at 65 cents before the expiry date of February 11, 2026.

Paradigm said up to a maximum of ~97.36m loyalty options would be issued and if fully exercised could raise ~$63.28m for the company.

The company said the piggyback options offer was contingent upon the exercise of loyalty options.

Eligible shareholders who exercise loyalty options on or before the expiry date are entitled  to receive one piggyback option for every two loyalty options exercised, in addition to the share received on exercise of each loyalty option.

The exercise price is $1 per piggyback option with an expiration date of February 11 2028.

If the piggyback options are fully issued and exercised, Paradigm said it could raise ~$48.68m. In total the offers have the potential to raise ~$111.96m.

‘Share in the value we aim to create’

Managing director Paul Rennie said the loyalty and piggyback options program was designed to reward our shareholders for their ongoing support as the company progress toward a pivotal phase in our journey.

Paradigm is scheduled to start enrolment of patients in Q1 CY25 for a phase III trial of PARA_OA_012, its repurposed anti-inflammatory drug pentosan polysulfate sodium (aka PPS, aka Zilosul), to treat knee osteoarthritis (OA).

In 2024, Paradigm determined the optimal dose of PAR_OA_012 (iPPS) for the phase III trial and had its trial protocol approved by the FDA.

“With the final phase of our OA clinical program now underway, this initiative not only allows our shareholders to share in the value we aim to create but also provides an opportunity to actively participate in the next chapter of our growth,” said Rennie.

“We remain deeply committed to delivering on our goals and driving meaningful outcomes for both our shareholders and patients.”

This article was developed in collaboration with Paradigm Biopharmaceuticals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Paradigm eyes $110m plus raise with shareholder loyalty offer