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Highlights
- Bioxyne has successfully raised $3 million through a well-supported placement.
- The funds are aimed at expanding medical cannabis manufacturing in the UK and Czechia.
- Directors of the company will partake in the investment, subject to approval.
Bioxyne (ASX:BXN) has announced securing firm commitments to raise $3 million through a placement to bolster its expansion into European markets. The biotechnology firm, with a focus on psychedelics, has strategically positioned these funds toward establishing medical cannabis manufacturing facilities in the United Kingdom and Czechia.
New and existing institutional shareholders, along with sophisticated investors from both domestic and international spheres, have shown strong support for this capital initiative. This confidence is reflected in the issuance of 120 million new shares priced at 2.5 cents each, representing a slight 2.2% discount from the 15-day volume-weighted average price (VWAP) of 2.56 cents as recorded at the close of trading on March 18, 2025.
In addition to the shares, Bioxyne is offering 60 million options, allowing investors the right to purchase one option for every two new shares, each exercisable at 5 cents and expiring two years from the issue date. Directors of the company have expressed their commitment by intending to participate with an investment amounting to $110,000, pending shareholder approval in the upcoming assembly.
Alpine Capital has taken the role of sole lead manager and bookrunner for this placement. Moreover, brokers and advisors involved in this significant transaction will be allocated 24 million options with an exercise price of 4.37 cents, and a further three million options at one cent, with both tranches matching the two-year expiry condition.
Previously, in February 2024, Bioxyne's subsidiary, Breathe Life Sciences, accomplished a milestone by becoming the first Australian entity to gain a Good Manufacturing Practice (GMP) license to produce psilocybin, MDMA, and medical cannabis. This advancement sets the stage for Bioxyne's European market penetration through setting up certified manufacturing facilities, propelling the company's growth strategy and supporting its revenue guidance aimed at $25 million for the fiscal year 2025.
CEO Sam Watson emphasized the overwhelming investor demand which surpassed the required capital, further attributing this decision to the company's current profitability and positive cash flow status. "While we received demand for well in excess of the amount raised, given that we are profitable and cash flow positive, we are of the view that it was important to limit the raise to the funds required for expansion as outlined in our strategic plan," Watson noted, highlighting the strategic nature of the capital raise during collaboration with Bioxyne.
