Highlights

  • 2-for-3 non-renounceable entitlement offer at A$0.004 per share.
  • Up to 358,658,990 new shares to be issued.
  • One free attaching option for every two new shares, exercisable at A$0.006.
  • Proceeds to fund ongoing working capital requirements.

The Hydration Pharmaceuticals Company Limited (ASX:HPC) has lodged an Appendix 3B for a proposed pro rata non-renounceable entitlement offer. Eligible shareholders will be able to subscribe for two new shares for every three shares held, at an offer price of A$0.004 per share. Up to 358,658,990 new shares may be issued, which at the offer price would raise up to about A$1.43 million before costs.

Offer Terms and Attaching Options

Each two new shares will come with one free attaching option, with up to 179,329,495 options to be issued. The options will have an exercise price of A$0.006 and will expire on 30 June 2029, with each option convertible into one ordinary share. The company intends to seek quotation of the new options on the ASX.

Eligible shareholders who take up their full entitlement can apply for additional securities under a shortfall offer. The Directors have absolute discretion over the allocation of shortfall securities and may scale back applications if demand exceeds availability. The offer is open to shareholders in Australia and New Zealand.

Timetable

The ex date is 27 October 2026 and the record date is 28 October 2026. Offer documents are expected to be sent to eligible shareholders on 2 November 2026, and the offer is scheduled to close on 16 November 2026.

New securities are expected to begin trading on a deferred settlement basis on 17 November 2026, with the issue date and results announcement set for 23 November 2026. Normal trading is expected to start on 24 November 2026.

Lead Manager and Use of Funds

Harbour City Corporate is lead manager to the offer. It will receive a fee of 6% (plus GST) of gross proceeds from the rights offer and shortfall offer, one option for every five new shares issued on the same terms as the new options, subject to shareholder approval or available placement capacity, and a A$6,500 monthly retainer if the offer raises at least A$1 million before costs. The offer is not underwritten.

The company said proceeds will be applied primarily to fund its ongoing working capital requirements. Further information is available on the company’s investor webpage.

Key Takeaways

Hydration Pharmaceuticals’ entitlement offer is a relatively large issue compared with its existing share base, allowing participating shareholders to increase their holdings by about two-thirds, with free attaching options. As the offer is not underwritten and funds are directed to working capital, the level of take-up will be important. The results announcement on 23 November 2026 is the next milestone.