Key Highlights

  • Hydration Pharmaceuticals announced a non-renounceable entitlement offer of two new shares for every three held at A$0.004, raising up to about A$1,434,635 before costs.
  • Every two new shares carry one free option exercisable at A$0.006 and expiring on 30 June 2029; the offer is not underwritten.
  • The offer opens on 2 November 2026 and closes at 5.00 pm on 16 November 2026, unless extended.

The Hydration Pharmaceuticals Company Limited (ASX:HPC) announced on 23 October 2026 a non-renounceable pro rata entitlement offer that could raise up to about A$1,434,635 before costs. Eligible shareholders will be offered two new shares for every three existing shares held on the Record Date of 28 October 2026, at an issue price of A$0.004. The company says this is a premium of about 33 per cent to the five-day volume-weighted average price to 22 October. It lodged a prospectus the same day.

Every two new shares subscribed for carry one free-attaching option, exercisable at A$0.006 and expiring on 30 June 2029. The offer is not underwritten and has no minimum subscription. Harbour City Corporate Pty Ltd is lead manager. Entitlements cannot be traded, and holders with addresses outside Australia and New Zealand are ineligible.

Eligible holders who take up their full entitlement may apply for extra securities from the shortfall at the same price, with directors holding absolute discretion over allocation, subject to the Corporations Act and ASX Listing Rules. Directors and their associates would need prior Shareholder approval to participate.

Use of funds and financial position

At full subscription the company allocates A$1,277,240, or 89 per cent, to Working Capital and A$157,395, or 11 per cent, to offer costs. If the offer is undersubscribed, costs are paid first, then working capital, then discretionary growth spending. The board states that, at full subscription, the proceeds plus existing cash fund operations for at least 18 months.

The prospectus shows cash of A$640,334 at 30 June 2026, and a pro forma A$1,917,574 if the offer is fully subscribed. Accumulated losses are about A$64.09 million. The company says the net proceeds do not alone remove Going Concern uncertainty. If the offer is materially undersubscribed, it says it may need to raise further capital, defer spending, sell Assets or, in the worst case, cease operating. Chairman Nick Berry said cost reductions produced positive EBITDA at a US entity level in August.

Business, dilution and risks

HPC operates as a wholesale supplier and online retailer of Hydralyte products solely in the United States, under an IP licence deed with Care Pharmaceuticals Pty Limited, a Prestige Consumer Healthcare subsidiary. The deed is described as perpetual and irrevocable, and Care Pharmaceuticals may seek termination after a material breach. Other listed risks include US market concentration, larger competitors, uncontracted Revenue and no guarantee that the new Options will be quoted.

On a maximum take-up basis, shares on issue would rise from 537,988,485 to 896,647,475. Shareholders who do not participate could be diluted by up to about 40 per cent. Broker options for the lead manager, subject to shareholder approval, could add roughly 8 per cent further dilution if exercised.

Share sale facility

Separately, Hydration Pharmaceuticals (ASX:HPC) is running a Facility for about 436 shareholders, roughly 3.47 per cent of shares, whose holdings were worth less than A$500 at the facility record date of 16 October 2026. With a closing price of A$0.003 that day, an unmarketable parcel is fewer than 166,667 shares. Eligible holders in Australia and New Zealand are included by default and may opt out by returning a retention form or lifting their holding to a marketable parcel, including through the offer, by 5.00 pm Melbourne time on 7 December 2026. The company pays brokerage costs, and the board may revoke the facility.

Dates

The offer opens on 2 November 2026 and closes at 5.00 pm on 16 November, unless extended. Results are due on 19 November and new securities are to be issued on 23 November. Shortfall shares may be issued up to 16 February 2027. The dates are indicative and may be varied.