Cynata Therapeutics Limited (ASX:CYP) is a Melbourne-based company whose core asset is the Cymerus platform, which it describes as a differentiated approach to Manufacturing mesenchymal stromal cells at commercial scale from a single, consistent cell source. In an ASX announcement dated 8 October 2026, the company announced a fully underwritten, pro-rata renounceable entitlement offer and an intention to establish an unmarketable parcel sale facility.

Terms of the entitlement offer

Eligible shareholders may apply for three new fully paid ordinary shares for every eight shares held on the record date, together with one free attaching entitlement option for every three new shares issued. The Offer Price is $0.01 per share, a 9.1% discount to both the closing price and the five-day volume-weighted average price on 7 October 2026. The offer is expected to raise approximately $913,000 before costs.

Each entitlement option has an exercise price of $0.02 and is exercisable up to two years and six months after issue. The entitlement Options will not be quoted on the ASX. Because the offer is renounceable, eligible shareholders may trade their entitlements on the ASX during the entitlement trading period.

Eligibility, Underwriting and fees

Eligible shareholders are those registered at 7.00pm Melbourne time on the Record Date of Tuesday 13 October 2026, with a registered address in Australia, New Zealand or Singapore, who are not in the United States or acting for a person in the United States.

The offer is lead managed and fully underwritten by Caravel Securities Pty Ltd. In addition to cash fees, the company has agreed to offer the underwriter or its nominees 18,000,000 options on the same terms as the entitlement options, to be issued on completion of the offer using the company's available capacity under Listing Rule 7.1.

Use of funds and strategic position

The company says funds raised will be used to pay professional adviser, director and consultant fees in connection with its strategic objectives, to pay the costs of the offer, and to provide working capital. It states that the Board is focused on evaluating future development pathways for the Cymerus technology and on broader strategic options, including seeking opportunities to realise value from the technology and to obtain rights to new assets.

Indicative timetable

The prospectus and Appendix 3B were lodged on 8 October 2026. The ex-date is Monday 12 October, the record date is Tuesday 13 October, and the offer opens on Friday 16 October, when the prospectus and personalised entitlement and acceptance forms become available through the Automic portal. Entitlement trading ends on Tuesday 20 October and the offer closes on Tuesday 27 October. Results are scheduled for announcement on Friday 30 October, new shares and options are issued on Tuesday 3 November, and trading of new shares starts on Wednesday 4 November. The company reserves the right to vary the dates by agreement with the underwriter.

Unmarketable parcel sale facility

Cynata also intends to establish a Facility allowing holdings with a Market Value of less than $500 on the relevant record date to be sold without brokerage fees. Further details are to be announced separately.

Risks and sector context

The offer issues new shares at a discount to the recent trading price and attaches options, which increases the number of securities on issue and affects the percentage held by shareholders who do not participate. The raise is small, at approximately $913,000, and the company states that the funds are directed at adviser, director and consultant fees, offer costs and working capital, not at clinical development. The strategic outcome of the Board's evaluation has not been announced, and the announcement does not say that any transaction has been agreed.

The prospectus lodged with ASIC and ASX contains a description of key risks, and the company advises eligible shareholders to read it in full before deciding. A Target market Determination is also available on the company's website.

For sector context, the company describes its Cymerus platform as a manufacturing approach for mesenchymal stromal cells at commercial scale from a single cell source. The announcement does not discuss market conditions for cell therapies.

What to watch next

Items to watch include the offer opening on 16 October 2026, the close on 27 October, the announcement of results on 30 October, issue of securities on 3 November, details of the unmarketable parcel sale facility, and any announcement from the Board on its strategic review of the Cymerus technology and new asset opportunities.