Highlights

  • Paradigm's Share Purchase Plan raised approximately A$7.375 million, well above the original A$2 million target.
  • Combined with a previously completed Placement, total Capital raised now stands at approximately A$21.35 million.
  • The company will issue approximately 43.38 million new shares under the SPP at A$0.17 per share.
  • Additional funding is expected to support Phase 3 clinical trial activities and preparation for future regulatory-related work.
  • Interim analysis for the Phase 3 PARA_OA_012 study remains expected in Q3 CY2026.

Paradigm Biopharmaceuticals Ltd (ASX:PAR) has announced the successful completion of its Share Purchase Plan (SPP), with existing shareholders providing support well above the company's original fundraising target. The plan generated approximately A$7.375 million, significantly exceeding the initial objective of A$2 million and further strengthening the company's financial position as it advances its late-stage clinical development program.

Shares of Paradigm Biopharmaceuticals were trading at AUD 0.16 during the afternoon session on 1 June 2026, down 3.03% for the day. Over the past 12 months, however, the stock remains down 48.39%, reflecting the challenges often associated with biotechnology companies progressing through advanced clinical development stages.

Paradigm is a late-stage Drug Development company focused on therapies targeting diseases where inflammation plays a significant role. Its primary development program centres on injectable pentosan polysulfate sodium (iPPS), which is currently being evaluated as a potential treatment for osteoarthritis through the company's Phase 3 clinical trial program.

The latest capital raising outcome provides additional funding flexibility as Paradigm works toward several important development milestones, including completion of dosing activities and a planned interim analysis for its global Phase 3 study.

Favourable Shareholder Participation Exceeds Expectations

The Share Purchase Plan was initially launched to provide eligible shareholders with an opportunity to participate in the company's fundraising efforts on terms similar to those offered to institutional investors.

According to Paradigm, applications received under the SPP totalled approximately A$7.375 million, comfortably exceeding the original A$2 million target.

Given the level of investor participation, the company elected to accept all valid applications submitted under the offer.

The result demonstrates notable support from existing shareholders at a time when the company is advancing a pivotal stage of its clinical development strategy.

Management indicated that the response reflects ongoing investor interest in Paradigm's clinical programs and upcoming milestones.

The capital raised under the SPP complements a previously completed institutional placement, allowing the company to substantially increase its available funding resources.

Total Capital Raised Reaches More Than A$21 Million

The latest SPP follows Paradigm's previously announced A$14 million placement.

When combined, the two initiatives have generated total proceeds of approximately A$21.35 million.

The company stated that the additional funding strengthens its Balance Sheet and provides greater financial flexibility as development activities continue.

Biotechnology companies frequently require substantial funding during late-stage clinical development due to the significant costs associated with large-scale global trials, regulatory preparation and future commercial planning.

For Paradigm, the additional capital is expected to support ongoing progress toward several important milestones within its osteoarthritis development program.

The strengthened funding position also allows the company to continue advancing activities linked to future regulatory processes and preparation for potential NDA-related work.

Management highlighted that maintaining a well-funded balance sheet remains important as the company approaches several anticipated value-driving events.

Details of the Share Purchase Plan

Under the SPP, shares were issued at A$0.17 per share.

The issue price was determined in accordance with the offer terms and represented a 2.5% discount to the five-day Volume weighted average share price leading up to the closing date of the offer.

As a result of the favourable participation, approximately 43,384,890 new fully paid ordinary shares will be issued under the plan.

In addition to the shares, participating shareholders will also receive one attaching option for every new share subscribed for under the SPP.

These Options remain subject to shareholder approval at the company's upcoming Extraordinary General Meeting.

The company confirmed that settlement of the SPP shares was expected around the end of May, with allotment and trading commencement scheduled during early June.

By accepting all valid applications, Paradigm ensured that all eligible participating shareholders were able to receive their requested allocation under the plan.

Funding Supports Phase 3 Osteoarthritis Program

A key reason for the capital raising is to support the continued advancement of Paradigm's global Phase 3 clinical trial program.

The company's lead study, known as PARA_OA_012, is evaluating injectable pentosan polysulfate sodium for osteoarthritis.

The Phase 3 program remains a central component of Paradigm's development strategy and represents one of the most important milestones in the company's history.

Management stated that the new capital will help support the program through its upcoming interim analysis, which remains expected during the third quarter of calendar year 2026.

In addition, the company is progressing toward another important milestone involving 100% patient dosing within the Phase 3 study.

Clinical Trials at this stage often require significant operational resources, making access to capital an important component of development planning.

The company noted that the additional funding provides flexibility as it advances toward these upcoming milestones.

Management Highlights Upcoming Development Milestones

Paradigm's Leadership emphasised the importance of the shareholder support received through the SPP.

Management indicated that the outcome reflects confidence in the company's clinical strategy and development objectives.

The company also acknowledged the participation of existing shareholders and noted that the SPP provided an opportunity for retail investors to participate on similar terms to those available through the institutional placement.

According to management, the additional capital places Paradigm in a favourable position as it approaches a series of significant milestones.

Among these are full patient dosing within the PARA_OA_012 study and the planned interim analysis anticipated later this year.

These milestones are expected to be important markers in the ongoing progression of the company's osteoarthritis development program.

About Paradigm Biopharmaceuticals

Paradigm Biopharmaceuticals is focused on developing pharmaceutical therapies intended to address unmet medical needs and improve patient outcomes.

The company's current primary focus is injectable pentosan polysulfate sodium, commonly referred to as iPPS.

The therapy is being investigated for conditions where inflammation is considered a major contributing Factor, with osteoarthritis representing the lead indication currently under evaluation.

Through its clinical development activities, Paradigm is seeking to generate data that could support future regulatory submissions and broader commercial opportunities.

The company remains focused on advancing its late-stage clinical Assets while maintaining sufficient funding resources to support ongoing development efforts.

What This Means for Investors

Paradigm's latest announcement highlights continued shareholder support for the company's development strategy, with the Share Purchase Plan raising approximately A$7.375 million compared with the initial A$2 million target.

Combined with the recently completed placement, total funds raised now stand at approximately A$21.35 million. The strengthened balance sheet provides additional financial flexibility as the company advances its global Phase 3 PARA_OA_012 osteoarthritis trial and prepares for future regulatory-related activities.

With 100% dosing and the Phase 3 interim analysis expected in the coming months, investors are likely to remain focused on upcoming clinical milestones as Paradigm progresses through a pivotal period in its development program.