Highlights

  • Bio-Gene Technology announced a Capital raising package totalling approximately AUD 3.21 million.
  • The Placement secured AUD 2.71 million from sophisticated and professional investors.
  • The company also launched a partially underwritten Share Purchase Plan targeting at least AUD 500,000.
  • Funding will support remaining regulatory studies for Flavocide and expanded production of Qcide.
  • Bio-Gene shares traded at AUD 0.028 during the afternoon session on 26 May 2026.

Bio-Gene Technology Ltd (ASX:BGT) has announced a capital raising initiative aimed at advancing regulatory work for its Flavocide product and supporting broader commercialisation activities across its insecticide portfolio.

The company confirmed it had secured binding commitments from sophisticated and professional investors for a Placement expected to raise approximately AUD 2.71 million before costs.

In addition, Bio-Gene will undertake a Share Purchase Plan (SPP), partially underwritten to a minimum of AUD 500,000, allowing eligible shareholders to participate in the raising on the same terms as institutional investors.

The latest funding package comes as Bio-Gene continues progressing development and commercialisation efforts for its naturally derived insecticide technologies targeting global pest management markets.

Bio-Gene Technology focuses on developing bio-insecticides derived from naturally occurring compounds designed to address increasing insecticide resistance challenges. The company’s products are being developed for use across agriculture, grain storage, public health, and consumer pest control markets.

Its key products, Flavocide and Qcide, are designed to provide alternative pest management solutions with lower environmental impact and reduced risks to human health compared with some conventional chemical treatments.

Placement Raises AUD 2.71 Million

Under the Placement, Bio-Gene will issue shares at AUD 0.025 per share, representing a discount to recent trading prices.

The Placement will occur in two tranches.

The first Tranche is expected to raise approximately AUD 1.9 million through the issue of around 76.24 million shares under the company’s available placement capacity.

A second tranche, expected to raise around AUD 0.8 million through the issue of approximately 32.16 million shares, will remain subject to Shareholder approval at a proposed Extraordinary General Meeting expected around 31 July 2026.

For every two Placement shares issued, participating investors will also receive one free attaching unlisted option, subject to shareholder approval.

The Options will carry an exercise price of AUD 0.035 and expire on 15 October 2027.

According to the company, approximately 54 million attaching options are expected to be issued under the Placement structure.

Share Purchase Plan Opens to Existing Shareholders

Alongside the Placement, Bio-Gene announced a Share Purchase Plan designed to allow existing shareholders to participate in the capital raising.

Eligible shareholders in Australia will be able to apply for up to AUD 15,000 worth of shares under the SPP without brokerage or Transaction Costs.

The shares offered through the SPP will also be priced at AUD 0.025 per share and will include attaching options on the same basis as the Placement.

The SPP has been partially underwritten to AUD 500,000.

The company stated that the SPP is expected to open on 2 June 2026 and close on 19 June 2026.

Bio-Gene also confirmed that shareholder approval will be required for the issue of underwritten SPP shares and options.

Funding to Support Regulatory Milestones

A major focus of the raising is the advancement of regulatory work for Flavocide.

Bio-Gene said proceeds will fund remaining safety studies required for submission of its first application seeking regulatory approval for the Flavocide active constituent in Australia.

Management identified this regulatory application process as an important milestone within the company’s broader commercialisation strategy.

The company also plans to direct part of the funds toward expanding production capacity for Qcide.

Additional proceeds are expected to support product development activities linked to commercial partnering arrangements, strategic initiatives, and general Working Capital requirements.

Management Focused on Commercialisation Progress

Managing Director and Chief Executive Officer Tim Grogan stated that achieving regulatory approval for Flavocide represents a key objective for the company.

According to management, the funding package is expected to support both regulatory progress and product Supply expansion activities linked to existing partnerships.

The company also noted that the raising would assist with maintaining momentum across its commercialisation plans.

Bio-Gene said it was encouraged by support received from both new investors and existing shareholders participating in the capital raising initiatives.

Structure of the Capital Raising

The Placement price of AUD 0.025 per share represented a discount of approximately 13.79% to the company’s last closing share price on 21 May 2026.

It also reflected a discount of around 22.11% to the 15-day Volume weighted average price calculated as at 21 May 2026.

Stralis Capital Partners Pty Ltd acted as Lead Manager to the Placement.

The company stated that the Lead Manager will receive a cash fee of approximately AUD 150,000.

Subject to shareholder approval, Bio-Gene also plans to issue approximately 3.72 million adviser options on the same terms as the attaching options offered under the Placement and SPP.

Bio-Gene’s Broader Business Strategy

Bio-Gene continues positioning itself within the growing market for alternative insecticide technologies as industries seek solutions capable of addressing chemical resistance concerns.

The company’s technologies are based on naturally derived compounds designed to target resistant insect populations while aiming to minimise environmental impact.

Its products are intended for use across multiple sectors including agriculture, grain storage, public health, and consumer applications.

Bio-Gene has been working to advance both product development and commercial Partnership opportunities as it moves toward broader regulatory and market milestones.

The company’s focus on bio-based insecticide technologies aligns with broader industry trends favouring sustainable pest management solutions and alternative chemistry platforms.

Market Attention on Regulatory Pathway

Investors are likely to continue monitoring Bio-Gene’s progress toward regulatory approval for Flavocide, particularly as regulatory milestones often represent important value inflection points for biotechnology and agricultural technology companies.

The company’s ability to expand production capacity for Qcide and progress commercial partnerships may also remain key areas of focus moving forward.

While Bio-Gene shares declined 3.45% during afternoon trade on 26 May 2026, the stock remains around 40% higher over the past year.

What This Means for Investors?

Bio-Gene’s latest capital raising is designed to strengthen the company’s funding position as it advances regulatory and commercialisation objectives across its insecticide portfolio.

The funding package provides additional resources for regulatory studies, expanded product Manufacturing, and partnership-related activities.

Investors are likely to monitor progress toward Flavocide regulatory submissions, outcomes from the Share Purchase Plan, and developments linked to commercial agreements and production expansion activities.

The company’s broader strategy continues focusing on positioning its naturally derived insecticide technologies within growing global Demand for alternative pest management solutions.