Highlights

  • Neurizon will redeem 1,000,000 convertible notes currently on issue, reducing the number held by Obsidian to 750,000.
  • The Redemption will be completed for total consideration of US$1,150,000, with Obsidian agreeing not to sell Neurizon shares for two months.
  • Neurizon confirms it remains fully funded through to topline readout of the HEALEY ALS Platform Trial and completion of the study.
  • The transaction demonstrates Neurizon's disciplined approach to Capital management and its focus on Shareholder value.

Neurizon Therapeutics Limited (ASX:NUZ; OTCQB:NUZTF), a late clinical-stage biotechnology company developing treatments for neurodegenerative diseases, has announced it has agreed to redeem 1,000,000 convertible notes held by Obsidian, reducing Obsidian's holding to 750,000 notes, as part of the Company's disciplined approach to capital management.

Redemption Terms and the Obsidian Standstill

The convertible notes being redeemed have a Face Value of US$1,110,000 and will be redeemed for total consideration of US$1,150,000. As part of the agreement, Obsidian has also agreed not to sell Neurizon shares for a period of two months.

The Company said the capacity to execute the transaction reflects its disciplined approach to cost management, and that the Board considers the transaction to be in the best interest of shareholders. The Board said it will continue to review and monitor the Company's funding structure.

Board Reaffirms Funding Through HEALEY ALS Trial

Neurizon confirmed that it remains fully funded through to topline readout of the Phase 2/3 HEALEY ALS Platform Trial and also through to completion of the Study. The Board considers that reducing Obsidian's holding of convertible notes on improved terms, together with the agreed standstill, is in the best interests of shareholders.

Interim Executive Chairman Sergio Duchini commented: “We are pleased to be able to execute this redemption as part of an active and disciplined approach to capital management. The Board considers securing an improved premium on the redemption, together with Obsidian's agreement to not sell Neurizon shares for two months reflects an appropriate and considered allocation of shareholder funds. The Board remains focused on ensuring Neurizon's funding strategy is optimised and in the best interest of all shareholders.”

Background to the Convertible Securities Agreement

Neurizon and Obsidian are parties to a Convertible Securities and Security Placement Agreement dated 23 December 2025 (CSSPA), under which Obsidian was issued 3,575,500 convertible notes by the Company. Further details are set out in the Company's ASX announcements dated 23 December 2025, titled 'New Funding Secured for HEALEY ALS Platform Trial' and 'Equity Funding Presentation', as well as the Company's ASX announcement dated 27 February 2026, titled 'Cleansing Statement – Section 708(12C)(e)'.

Neurizon is developing its lead drug candidate, NUZ-001, for the treatment of Amyotrophic Lateral Sclerosis (ALS), the most common form of Motor Neurone Disease (MND). NUZ-001 is being evaluated as Regimen I in the registrational Phase 2/3 HEALEY ALS Platform Trial and is an investigational product not yet approved for commercial use in any jurisdiction.

Conclusion

The partial redemption reduces Obsidian's convertible note holding from 1,750,000 to 750,000 notes, pairs the transaction with a two-month standstill on Obsidian's ability to sell Neurizon shares, and leaves the Company's funding position through the HEALEY ALS Platform Trial unchanged. The Board has framed the move as part of an active, disciplined approach to capital management aimed at protecting shareholder value while the trial progresses toward its topline readout.