BlinkLab Grants 5.44 Million Unquoted Options to Joint Lead Managers as Capital Raise Fee

Details of BlinkLab’s Joint Lead Manager Options Issued on 1 July 2026

On 1 July 2026, BlinkLab Limited submitted an Appendix 3G to the ASX, announcing the issuance of 5,446,154 unquoted options to its joint lead managers. These options, classified as "JLM Options ex at $0.975," were issued as a non-cash fee component for services rendered during the company’s capital raise. No cash was received by BlinkLab in exchange for these options.

Issued on the notification date, these options remain unquoted on the ASX, meaning they are not traded on the open market like ordinary shares. Nevertheless, they form part of BlinkLab’s capital structure and represent potential future dilution if exercised before expiry.

Exercise Price Set at $0.975 with Expiry on 30 June 2028

The options carry an exercise price of AUD $0.975 each, requiring joint lead managers to pay this amount per share upon exercising their options. Once exercised, these options convert into ordinary fully paid BB1 shares, integrating into the company’s main quoted equity class.

These options expire on 30 June 2028, giving holders approximately two years from the issue date to decide on exercising. The attractiveness of exercising will depend on BlinkLab’s share price relative to the $0.975 strike price during this period. The company confirmed that all securities in this class rank equally from the issue date, and ASX has validated the terms as appropriate and equitable under Listing Rule 6.1. The terms were disclosed in BlinkLab’s Notice of Meeting dated 22 May 2026.

Context Within BlinkLab’s April 2026 Capital Raise

This option issuance relates to a broader capital raise first disclosed in an Appendix 3B lodged on 16 April 2026 titled "Update - Proposed issue of securities - BB1." The options form part of the fee structure agreed with joint lead managers who facilitated that transaction. Issuing options as non-cash fees to brokers is common in smaller-cap ASX capital raises, where brokers accept options instead of or alongside cash fees.

BlinkLab noted the transaction is not fully complete, with director placement shares approved at the 25 June 2026 shareholder meeting still pending issuance, expected in the coming weeks. Investors should expect further securities notifications as the company finalizes the transaction.

Shareholder Approval of Director Placement Shares on 25 June 2026

Shareholders approved the issue of director placement shares at the general meeting on 25 June 2026, fulfilling ASX Listing Rules requirements for related-party transactions. These shares have yet to be issued but are anticipated shortly.

The company did not disclose the number, issue price, or directors involved in this placement in the current announcement. Interested parties should consult the Notice of Meeting dated 22 May 2026 for detailed information on these securities.

BlinkLab’s Total Securities on Issue After the Options Grant

Following issuance of the 5,446,154 JLM options, BlinkLab’s register shows 152,873,007 ordinary fully paid shares quoted on the ASX. The company’s unquoted securities include various option classes and performance rights: 2,000,000 options expiring 2 April 2029 at $0.25; 33,525,000 options expiring 17 September 2026 at $0.25; 1,750,000 options expiring 27 September 2029 at $0.35; 1,000,000 options expiring 27 September 2029 at $0.35 with 24-month vesting; 6,023,333 options expiring 9 July 2028 at $0.45; and 4,400,000 performance rights.

The addition of the $0.975 exercise price JLM options increases the pool of unquoted securities that, if fully exercised, could significantly dilute existing shareholders. The company did not specify total potential dilution. Investors should consider all unquoted securities when evaluating BlinkLab’s fully diluted share capital. Note that ASX’s automated securities-on-issue figures may not reflect the current issued capital if other forms are pending processing.

Rationale Behind Using Non-Cash Options to Compensate Joint Lead Managers

Issuing options instead of cash fees is a common practice among ASX-listed small and mid-cap companies. It conserves cash for operational needs while rewarding managers who underwrite or coordinate placements. For joint lead managers, options offer potential upside tied to future share price performance, aligning their interests with shareholders over the option term.

In BlinkLab’s case, the $0.975 exercise price was determined appropriate and equitable, as confirmed by ASX under Listing Rule 6.1. The two-year term to June 2028 provides a reasonable timeframe for managers to evaluate exercising based on market conditions. Should the share price exceed $0.975, managers could profit from the difference upon conversion to ordinary shares.

Overview of BlinkLab’s Unquoted Options and Upcoming Expiry Dates

Investors should monitor the 33,525,000 options expiring on 17 September 2026 at $0.25, the largest unquoted tranche, which will expire in less than three months. Depending on the share price, exercising or lapsing of these options could materially affect issued capital and cash flow.

Other option classes have expiry dates extending to 2029, allowing holders more time to assess the company’s progress. The 4,400,000 performance rights represent another potential share source, typically contingent on milestone achievement rather than cash exercise. No updated vesting or performance details were provided in this announcement. For full terms, investors should refer to the Notice of Meeting dated 22 May 2026 and related disclosures.

Implications of Pending Director Placement for BB1 Shareholders

With the JLM options now issued, the remaining element of the April 2026 capital raise is the director placement shares approved on 25 June 2026, expected imminently. Upon issuance, BlinkLab will likely provide a further securities notification confirming completion, formally closing the transaction initially announced in April.

This final step concludes a multi-month fundraising and issuance process. The company appears to be methodically fulfilling approvals and regulatory requirements in compliance with ASX Listing Rules and the Corporations Act. The immediate market impact of this options issuance was unclear, as such notifications typically reflect pre-arranged agreements rather than new strategic developments.

Regulatory Compliance for JLM Option Issuance

Filing an Appendix 3G is mandatory under ASX Listing Rules when issuing unquoted securities not intended for listing. This ensures market transparency regarding all securities issued. BlinkLab’s filing links the options issuance to the previously disclosed April 2026 Appendix 3B transaction, maintaining a clear audit trail.

ASX has confirmed the JLM options’ terms as appropriate and equitable under Listing Rule 6.1. The material terms were publicly disclosed in the Notice of Meeting dated 22 May 2026, allowing shareholders to review before the 25 June meeting where approvals were granted. This layered disclosure process reflects ASX procedural requirements and highlights the importance of monitoring a company’s full regulatory filings to understand its capital management activities.