Highlights

  • Nexalis Therapeutics has signed a binding letter of intent with Point8 Capital for a replacement funding Facility.
  • The proposed facility provides access to up to $53 million across three clinical development programs.
  • Funding is intended to support IRX-211, IRX-616a and SRX-25 clinical programs.
  • The new arrangement follows the cancellation of remaining commitments under Nexalis’ previous facility with Linlithgow Family Office.

Nexalis Therapeutics Ltd (ASX:NX1) has entered into a binding letter of intent with Sydney-based biotechnology Investment firm Point8 Capital Pty Ltd for a replacement funding facility valued at up to $53 million. The proposed arrangement is intended to support the advancement of the company’s key clinical-stage therapeutic programs focused on cancer pain and mental health indications.

Shares of Nexalis Therapeutics traded at AUD 0.024 during the afternoon session on 28 May 2026, down 4.00% for the day and 20.00% lower over the past year. The company’s latest update centred on restructuring its clinical funding arrangements following changes to its existing facility with Linlithgow Family Office Pty Ltd (LFO).

About Nexalis Therapeutics

Nexalis Therapeutics is an Australian clinical-stage Drug Development company focused on rapid-onset therapies targeting unmet needs across pain management and mental health treatment areas.

The company’s development pipeline currently includes IRX-211 for Breakthrough Cancer Pain (BTcP), IRX-616a for Panic Disorder (PD), and SRX-25 for Treatment-Resistant Depression (TRD).

Nexalis has stated that its broader strategy is focused on pursuing U.S. FDA approval pathways, including the 505(b)(2) regulatory process, which may provide a potentially faster and more cost-effective development route for selected therapies.

New Funding Arrangement Introduced

Under the newly announced Binding LOI, Point8 Capital would provide up to $53 million in aggregate funding through three separate sub-facilities aligned with Nexalis’ primary clinical programs.

The proposed structure is intended to replace the company’s earlier funding arrangement with LFO, which had originally been announced on 31 October 2025 and also carried a facility size of approximately $52.3 million.

According to Nexalis, Point8 Capital specialises in structured funding solutions for biotechnology and life sciences companies developing clinical-stage therapeutic Assets. The investment group focuses on non-dilutive and hybrid funding structures for Phase 1 through Phase 3 programs.

The company also noted that Point8 is led by Dave Parmar, who co-founded RoseRx, previously known as Rosemary Health, an AI-powered healthcare engagement platform whose clients include major pharmaceutical companies such as Novartis and Novo Nordisk.

Breakdown of the Proposed Funding Facility

The proposed Point8 facility has been divided into three dedicated sub-facilities linked to Nexalis’ clinical pipeline.

The IRX-211 clinical trial development program has been allocated a proposed facility limit of $15.49 million.

The IRX-616a Panic Disorder development program has been assigned a proposed limit of approximately $16.09 million.

Meanwhile, the IRX-SRX25 development program, which includes both Phase 1 and Phase 2 studies, carries the largest proposed allocation at $22 million.

The company stated that funding under the facility would be provided through staged drawdowns linked to approved clinical trial invoices and eligible development expenditures.

The proposed Interest Rate under the arrangement is 15% per annum, capitalised monthly, while default interest would apply at an additional 5%.

The facility would also be secured through a General Security Deed covering the company’s assets and undertakings.

Why Nexalis Is Replacing the Existing Facility

Nexalis disclosed that LFO has formally issued notice permanently cancelling the remaining available commitment under the previous Debt funding arrangement and confirmed it would not accept further drawdown requests.

The company stated that since the commencement of the LFO facility, it had submitted $2.4 million in drawdown requests, of which only $0.8 million had been received.

Management said it had continued engaging with LFO in recent months in an attempt to secure funding linked to outstanding drawdown requests. However, the board also began discussions with alternative funding providers to support continuity across its clinical trial programs.

The Point8 arrangement is therefore intended to provide an alternative funding pathway as Nexalis progresses its drug development pipeline.

The company also advised that it is currently considering its Options in response to LFO’s actions.

Permitted Use of Funds Focused on Clinical Development

According to Nexalis, funds drawn under the proposed facility would be restricted to approved Research and Development activities directly connected to its clinical programs.

These include payments to contract research organisations (CROs), trial-related vendor costs, laboratory expenses and Manufacturing activities linked to clinical Supply requirements.

The funding may also support active pharmaceutical ingredient (API) supply, placebo and active batch manufacturing, stability program expenditure and animal toxicology studies required to progress Investigational New Drug (IND) pathways.

The company added that certain specification adjustment requirements may also be considered where there is a valid overseas finding supporting the expenditure.

Option Structure Included in Funding Terms

As part of the proposed replacement facility, Point8 Capital would receive approximately 49.35 million options.

Nexalis stated that the options are intended to align with the progress of each clinical development program and are structured across three tranches corresponding to IRX-211, IRX-616a and SRX-25.

The options are expected to become exercisable once each program reaches Phase 3 readiness, including completion of earlier clinical studies and satisfaction of regulatory requirements necessary to commence Phase 3 trials.

The options would carry a maximum term of five years.

The proposed exercise price would be set at the higher of AUD 0.025 per share or 90% of the company’s 90-day Volume-weighted average share price measured one Business day prior to exercise.

Temporary Suspension of Current Study Orders

While final transaction documents for the Point8 facility are being completed, Nexalis confirmed that it has temporarily suspended current study orders with iNGENū CRO Pty Ltd relating to the IRX-211 and IRX-616a programs.

The company said it expects these study orders to be reinstated once the new funding facility becomes available.

Management indicated that further updates regarding the funding process and program progression will be provided in due course.

Approvals and Conditions Still Outstanding

Although the Binding LOI has been signed, the proposed facility remains subject to several conditions before it becomes fully effective.

These include Shareholder approval for the issue of options to Point8 Capital and execution of final transaction documentation, including the General Security Deed.

As a result, the funding arrangement is not yet finalised and remains conditional on completion of the required approval process.

Clinical Pipeline Remains Central to Strategy

The three programs covered by the proposed facility remain central to Nexalis’ development strategy.

IRX-211 is being developed for Breakthrough Cancer Pain, an area where rapid-onset pain relief may address gaps in current treatment approaches.

IRX-616a is focused on Panic Disorder, while SRX-25 is targeting Treatment-Resistant Depression, a condition associated with limited treatment success in some patient populations.

The company has previously stated that these therapeutic indications were selected following consultation with regulatory authorities and represent areas with ongoing unmet medical need.

What This Means for Investors

Nexalis Therapeutics’ latest update signals a significant change in its funding structure as the company works to maintain continuity across its clinical development programs.

The proposed Point8 facility provides access to funding aligned with Nexalis’ three primary therapeutic assets while replacing a previous arrangement that the company says is no longer available for further drawdowns.

Investors are likely to monitor progress on shareholder approvals, completion of final facility documentation and the reinstatement of suspended study orders over the coming months.

The timing and availability of funding may also remain an important Factor in the advancement of Nexalis’ clinical trial pipeline.