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Chimeric Therapeutics Limited (ASX:CHM), a clinical-stage cell therapy firm, has sought Quotation for 1,770,833 newly issued fully paid ordinary shares after converting 85 convertible notes on 2 July 2026. This conversion, conducted under shareholder-approved terms at an Extraordinary General Meeting on 17 April 2026, increases the company’s existing quoted Capital/">Share Capital. Following this, CHM’s total quoted ordinary shares outstanding now stand at 56,498,900, a key metric for investors in the small-cap biotech sector as the company continues to manage its Capital Structure.
Key Points
- Company: Chimeric Therapeutics Limited (ASX:CHM)
- 1,770,833 new fully paid ordinary shares applied for quotation after conversion of 85 convertible notes (CHMAAK)
- Conversion date: 2 July 2026; conversion price per share: $0.048
- Shareholder approval for conversion secured at EGM on 17 April 2026
- Total quoted ordinary shares on issue post-quotation: 56,498,900
- 405 convertible notes remain unquoted and outstanding
- Investors should monitor further note conversions and updates on the company’s clinical pipeline and financing strategy
Conversion of 85 Convertible Notes into 1,770,833 Ordinary Shares Completed
On 2 July 2026, Chimeric Therapeutics Limited finalized the conversion of 85 convertible notes, identified under ASX code CHMAAK, into 1,770,833 fully paid ordinary shares. The company has applied to the ASX for quotation of these shares, which were issued on the same date as the conversion. This standard process allows convertible noteholders to exchange debt instruments for underlying Equity.
The conversion price was set at $0.048 per share, as outlined in the Notice of EGM dated 19 March 2026. The consideration was non-cash, involving the conversion of notes rather than new cash inflows, meaning no immediate impact on the company’s cash reserves from this transaction.
Shareholder Approval at April 2026 EGM Enables CHMAAK Note Conversion
The conversion was executed following shareholder approval granted at the Extraordinary General Meeting held on 17 April 2026. This meeting authorized the conversion terms detailed in the 19 March 2026 Notice of EGM, ensuring compliance with ASX Listing Rules related to securities issuance.
The staggered nature of the conversion is indicated by the remaining 405 unconverted convertible notes after the 2 July 2026 conversion. This suggests further conversions are anticipated, which investors should consider when evaluating potential dilution and share count changes.
Total Quoted Ordinary Shares Increase to 56,498,900 After New Share Quotation
Following the quotation of the 1,770,833 shares, Chimeric Therapeutics’ total quoted fully paid ordinary shares outstanding rose to 56,498,900. This figure is generated by the ASX system upon Appendix 2A lodgement and may not fully represent the company’s total Issued Capital if other capital transactions are concurrently processed.
The addition of approximately 1.77 million shares is a modest increase relative to the prior base of roughly 54.7 million shares. However, the presence of numerous unquoted securities—including Options, warrants, performance rights, and outstanding convertible notes—means further share issuances could occur, impacting the company’s capital structure.
405 CHMAAK Convertible Notes Still Outstanding Indicate Future Share Issuances Possible
The Appendix 2A’s Part 4 capital table shows 405 CHMAAK convertible notes remain unconverted and unquoted following the 2 July 2026 transaction. This signals that the conversion process is ongoing, with potential for additional ordinary shares to be issued upon further conversions under the same shareholder-approved terms.
The ultimate number of shares issuable from these remaining notes depends on the conversion formula detailed in the 19 March 2026 Notice of EGM. The company did not disclose the exact share count or timing for future conversions in this update; investors should review the Notice of EGM and CHMAAK convertible note Facility terms for further details.
Overview of Chimeric Therapeutics’ Unquoted Securities: Options, Warrants, and Performance Rights
Beyond convertible notes, the company’s capital table reveals a significant portfolio of unquoted securities. These include 14,666,683 options expiring 31 December 2030 at an exercise price of $0.50 (CHMAAI), 500,000 options expiring 31 March 2029 at $0.60 (CHMAAJ), and 250,000 options expiring 10 October 2028 at $0.80 (CHMAAH). Additionally, there are 3,006,331 options under the CHMAY class with various expiry dates and exercise prices.
Chimeric Therapeutics also has 375 warrants (CHMAAL) and 72,280 performance rights (CHMAB) outstanding. Collectively, these unquoted securities represent a substantial pool of potential future share issuances, which could materially increase the total shares outstanding if exercised or vested. Investors typically consider these figures when assessing the company’s fully diluted capital structure and potential effects on Earnings Per Share.
New Shares Granted Equal Ranking With Existing CHM Ordinary Shares From Issue Date
The company confirmed in the Appendix 2A that the 1,770,833 newly issued fully paid ordinary shares rank equally in all respects with existing Issued Shares within the CHM ordinary Share Class as of their issue date, 2 July 2026. This ensures holders of these shares have identical rights to existing shareholders, including voting, dividends, and capital returns.
This equal ranking from the issue date is standard practice, providing market clarity on the rights attached to the new shares and confirming there are no restrictions or deferred rights associated with these securities.
Conversion Price of $0.048 Reflects Formula-Based Pricing Under Capital Strategy
The $0.048 conversion price was determined by a formula outlined in the 19 March 2026 Notice of EGM, rather than a fixed price, aligning conversion terms with market conditions at the time. This approach is common in convertible note arrangements to balance noteholder interests with prevailing share prices.
The immediate share price impact was not disclosed in the update, but the conversion price serves as a reference for investors evaluating whether the conversion represented a premium, discount, or parity relative to CHM’s market price on 2 July 2026.
Convertible Notes Integral to Chimeric Therapeutics’ Funding Model
Convertible notes are a common funding tool for clinical-stage biotech companies like Chimeric Therapeutics, which often lack product Revenue and require capital for research and clinical trials. These instruments provide financing with deferred shareholder dilution, converting debt to equity at a later stage.
For CHM, the CHMAAK notes form part of a broader capital structure that includes multiple option series and warrants. Conversion of notes reduces debt and improves Balance Sheet metrics but increases share count. The company did not disclose original terms of the CHMAAK facility, such as total Face Value, Interest Rate, or issuance date; investors should consult prior disclosures and the March 2026 Notice of EGM for this information.
Investor Considerations Following July 2026 Convertible Note Conversion
With 405 CHMAAK convertible notes still outstanding, investors should monitor the timing and volume of future conversions, which will be accompanied by ASX Appendix 2A filings and quotation applications. Tracking these will provide insight into noteholder sentiment and dilution trends.
Additionally, investors should watch for updates on Chimeric Therapeutics’ clinical programs, funding initiatives, and broader biotech sector developments that may influence sentiment toward small-cap cell therapy companies. This update was administrative only, with no operational or clinical news disclosed; any such developments would be announced separately.
