Avita Medical Reports Expiry of Over 140,000 Unquoted Securities Across Multiple Series

6 min read | July 03, 2026 12:32 AM AEST | By Anjali Anand

Avita Medical Reports Expiry of Over 140,000 Unquoted Securities Across Multiple Series

Key Points

Company: Avita Medical Inc. (ASX:AVH)
More than 140,000 unquoted equity securities, including options with various exercise prices and expiry dates plus restricted stock units, have lapsed due to unmet vesting or exercise conditions
Affected security classes: AVHAE, AVHAAN, AVHABI, AVHABP, AVHABE, and AVHAAA (restricted stock units)
Lapse dates range from 25 May 2025 to 30 June 2026; no consideration was paid upon cessation
Investors should monitor for any future grants of replacement incentive securities and updates to Avita Medical's total issued capital and option register

Eight Distinct Tranches of Avita Medical Securities Expire Between May 2025 and June 2026

In its 3 July 2026 filing, Avita Medical consolidated the expiry of eight separate tranches of unquoted equity securities, each corresponding to a distinct lapse event. These expiries occurred over a period exceeding 13 months, beginning with 3,500 AVHABP options expiring on 25 May 2025, exercisable at USD 8.73 and expiring 22 January 2035, and culminating with multiple lapses on 30 June 2026. The filing reflects a permitted ASX practice of reporting multiple cessation events simultaneously in a single Appendix 3H notification.

Each cessation was due to the lapse of conditional rights as the attached conditions were either unmet or could no longer be satisfied. This standard language applies to equity incentives subject to performance hurdles, service requirements, or other vesting criteria. Avita Medical confirmed that no consideration was paid to holders upon expiry. The company did not disclose the specific conditions or reasons for non-fulfillment for each tranche.

AVHAE Options: 100,000 Securities Expire on 30 June 2026 Across Various Prices and Dates

The largest volume of expired securities pertains to the AVHAE class, comprising 100,000 options lapsing on 30 June 2026. These options have various expiry dates and exercise prices, indicating AVHAE serves as an umbrella code for legacy or broadly issued option series. The expiry of these options reduces the company's outstanding unquoted equity securities, eliminating a potential source of dilution. Specific exercise prices and expiry dates for these options were not disclosed, nor was commentary provided on the remaining AVHAE register.

AVHABP Options at USD 8.73: Four Lapse Events Totaling 16,500 Securities

The AVHABP option series, with an exercise price of USD 8.73 and expiry on 22 January 2035, experienced four separate lapses: 3,500 options on 25 May 2025; 6,667 on 2 June 2026; 3,333 on 23 June 2026; and 3,000 on 30 June 2026, totaling 16,500 options. The staggered lapse dates suggest time-based vesting or performance milestones assessed at intervals, each tranche failing to meet conditions. The company did not provide details on the conditions or lapse circumstances.

AVHABE Options at USD 17.48: 20,000 Securities Expire on 2 June 2026

The AVHABE class, options expiring 17 February 2034 with an exercise price of USD 17.48, saw 20,000 securities lapse on 2 June 2026. These high-strike options likely require the share price to reach or exceed USD 17.48 for exercise to be viable. Their expiry removes potential dilution. Such options are often granted to senior executives or during periods of elevated share price. The company did not disclose holder identities or additional context.

AVHABI Options at USD 12.64 and AVHAAN Options at USD 4.97 Also Expire

Additional expiries include 1,500 AVHABI options (exercise price USD 12.64, expiry 4 January 2034) on 30 June 2026, and 125 AVHAAN options (exercise price USD 4.97, expiry 1 July 2032) on 6 June 2026. Though smaller in volume, these lapses further reduce outstanding unquoted equity obligations. The AVHAAN options carry the lowest strike price among the expired series, possibly reflecting earlier grants or lower historical share prices. No details on remaining outstanding securities were provided.

AVHAAA Restricted Stock Units: 2,710 Units Lapse on 30 June 2026

Alongside options, 2,710 restricted stock units (RSUs) under the AVHAAA code lapsed on 30 June 2026. RSUs represent rights to receive ordinary shares upon meeting vesting conditions, typically without an exercise price. Their lapse means the associated shares will not be issued. RSU forfeitures often result from employee departures or unmet performance targets. The company did not specify reasons for these lapses.

No Compensation Paid by Avita Medical for Any of the Eight Lapse Events

Avita Medical confirmed no consideration was paid for any of the expired securities, consistent with standard forfeiture of unvested or unexercised incentive instruments. This distinguishes lapses from buybacks or cancellations involving payments. The absence of cash outflows is a neutral to slightly positive factor for the company’s balance sheet. The removal of these securities simplifies the capital structure, though the overall dilution impact depends on remaining outstanding options and RSUs, which were not disclosed.

Impact of Lapsed Securities on Avita Medical's Dilution Profile

Collectively, approximately 140,335 securities expired across the eight tranches, including options from five security codes and 2,710 RSUs. While many tranches are modest individually, the aggregate lapse significantly reduces potential dilution from these instruments. Investors focused on fully diluted share counts may view this as a modest positive. However, patterns of unvested securities lapsing might reflect broader workforce or performance issues, warranting further review of Avita Medical’s operational and financial status. The company did not address potential replacement grants in this update.

Context of Avita Medical's Dual Listing and Operations

Avita Medical Inc., a US-based regenerative medicine company, trades on the ASX under ticker AVH as part of its dual-market listing. The company commercializes the RECELL System, a point-of-care technology for skin restoration used in burn treatment and other conditions. Incorporated in the US with an Australian Registered Body Number (ARBN 641288155), Avita Medical complies with US corporate law and ASX continuous disclosure rules, including filing Appendix 3H notifications when equity securities lapse.

The 3 July 2026 Appendix 3H filing aligns with these compliance obligations. This update pertains solely to the cessation of unquoted equity securities and contains no operational, financial, or strategic guidance. Investors should rely on the company’s latest financial reports, clinical developments, and regulatory announcements for business outlook insights.

Investor Considerations Following These Expiries

The immediate impact on Avita Medical’s share price was not evident from public information. Such administrative filings typically attract limited market reaction. However, investors tracking the company’s fully diluted capital structure may adjust their models to reflect the removal of approximately 140,335 unquoted securities.

Key upcoming milestones include potential future grants of options or RSUs, which would be announced via separate Appendix 3B filings, alongside forthcoming operational and financial updates. Investors should also look for disclosures providing a comprehensive view of the remaining outstanding option and RSU pool to better understand residual dilution risk. The company did not disclose these figures in the current update.

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