Announcement PDF Acrux Limited ACN 082 001 152 OPTIONS PROSPECTUS For the offer of: (a) up to 38,243,646 New Options to SPP Participants on the basis of 1 New Option for every Share subscribed for under the SPP (SPP Options Offer); (b) up to 75,714,259 New Options to Placement Participants on the basis of 1 New Option for every Share subscribed for under the Placement (Placement Options Offer); and (c) 50,000,000 New Options in aggregate to the Lead Managers as part consideration for the provision of lead managerial and bookrunner services in connection with the Placement (Lead Manager Options Offer), (together, the Offers). No application monies are payable for the grant of New Options. No funds will be raised by the Company in connection with the Offers unless and until the New Options are exercised in due course. The Offers are not underwritten. The Offers close at 5:00 pm (AEDT) on 17 February 2025. Important notice This Prospectus is a transaction-specific prospectus issued under section 713 of the Corporations Act. This document is important and should be read in its entirety. The securities offered in connection with this Prospectus are of a speculative nature. If you are in doubt about what to do, you should consult your stockbroker or professional adviser without delay. Not for release to US wire services or distribution in the United States. 1 Important information 1.1 General This Prospectus is dated 17 January 2025 and was lodged with ASIC on that date with the consent of all Directors. Neither ASIC, ASX nor their respective officers take any responsibility for the contents of this Prospectus or the merits of the investment to which this Prospectus relates. No New Options will be issued on the basis of this Prospectus later than 13 months after the date of this Prospectus (being the expiry date of this Prospectus). A copy of this Prospectus is available for inspection at the registered office of the Company during normal business hours. The Company will provide a copy of this Prospectus to any person on request. 1.2 Continuously quoted securities This Prospectus is a transaction-specific prospectus for an offer of New Options to acquire continuously quoted securities (as defined in the Corporations Act) and has been prepared in accordance with section 713 of the Corporations Act. It does not contain the same level of disclosure as an initial public offering prospectus. In making representations in this Prospectus, regard has been had to the fact that the Company is a disclosing entity for the purposes of the Corporations Act and certain matters may reasonably be expected to be known to potential investors and professional advisers whom potential investors may consult. 1.3 Exposure period No exposure period applies to this Prospectus by operation of ASIC Corporations (Exposure Period) Instrument 2016/74. 1.4 ASIC Instrument 2016/80 This Prospectus has been prepared, in part, to ensure that the relief provided under ASIC Corporations (Sale Offers That Do Not Need Disclosure) Instrument 2016/80 (Instrument 2016/80) is available in respect of the New Options. Instrument 2016/80 provides relief from the on-sale provisions of section 707 of the Corporations Act and will relieve the need for any further disclosure to be made prior to the on-sale of Shares issued following the exercise of New Options, within 12 months of their date of issue. Shares issued on exercise of the New Options will be able to be immediately traded on ASX (subject to the grant of quotation). 1.5 Foreign jurisdictions This Prospectus does not, and is not intended to, constitute an offer in any place which, or to any person to whom, it would be unlawful to make such an offer or to issue this Prospectus. Distribution of this Prospectus in jurisdictions outside Australia and New Zealand may be restricted by law and persons who come into possession of this Prospectus should seek advice on and observe these restrictions. Failure to comply with these restrictions may violate securities laws. The Company recommends you seek your own advice on such restrictions and disclaims all liability to such persons. This Prospectus may not be released or distributed in the United States. The New Options have not been and will not be registered under the US Securities Act of 1933 (the Securities Act) or the securities laws of any state or other jurisdiction of the United States. The New Options may not be offered, sold or otherwise transferred in the United States or to any person acting for the account or benefit of a person in the United States except in a transaction exempt from, or not 1 subject to, the registration requirements of the Securities Act and the applicable securities laws of any state or other jurisdiction in the United States. 1.6 Nominees and custodians Nominees and custodians may not distribute this document, or permit any beneficial Shareholder to participate in the Offers, in any country outside Australia and New Zealand, except with the consent of the Company. 1.7 Forward-looking statements This Prospectus contains forward-looking statements which may be identified by words such as ‘may’, ‘will’, ‘expect’, ‘anticipate’, ‘estimate’, ‘would be’, ‘believe’, ‘continue’ or the negative or other variations of comparable terminology and other similar words that involve risks and uncertainties. These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that, as at the date of this Prospectus, are expected to take place. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, the Directors and management of the Company. Key risks associated with an investment in the Company are detailed in section 7 of this Prospectus. These and other factors could cause actual results to differ materially from those projected in any forward-looking statements. The Company has no intention to update or revise forward-looking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information detailed in this Prospectus, except where required by law. The Company cannot and does not give assurances that the results, performance or achievements expressed or implied in the forward-looking statements detailed in this Prospectus will actually occur and investors are cautioned not to place undue reliance on these forwardlooking statements. 1.8 Publicly available information No document or information included on the Company’s website is incorporated by reference to this Prospectus. 1.9 Risk factors Refer to section 7 of this Prospectus for details of the risks attached to an investment in the Company. These risks, together with other general risks applicable to all investments in securities not specifically referred to, may affect the value of New Options or Shares issued on exercise of New Options in the future. Accordingly, investment in the Company should be considered speculative and investors should be aware that they may lose some or all of their investment. 1.10 Electronic Prospectus If you have received this Prospectus as an electronic prospectus together with an Application Form, please ensure that you have received the entire Prospectus accompanied by the Application Form. If you have not, please contact the Company and the Company will send you another copy free of charge. The Company reserves the right not to accept an Application from a person if it has reason to believe that when that person was given access to the electronic Application Form, the Application Form was not provided together with the Prospectus and any relevant supplementary prospectus, or any of those documents were incomplete or altered. 2 1.11 Investment advice This Prospectus does not consider the financial circumstances, financial objectives or particular needs (including financial or taxation issues) of any specific investor. This Prospectus does not constitute investment advice nor advice regarding the taxation consequences of applying for New Options under this Prospectus. Potential investors should obtain professional advice before applying for New Options under this Prospectus. The Company, its advisers and its officers do not accept any responsibility or liability for any such investment or taxation consequences to Shareholders. 1.12 Disclaimer of representations No person is authorised to provide any information or to make any representation in connection with this Prospectus or the Offers that are not contained in this Prospectus. Any information or representations not contained in this Prospectus may not be relied upon as having been authorised by the Company, any of its related bodies corporate and affiliates, nor any of their respective directors, officers, partners, employees and agents in connection with the Offers. 1.13 Defined terms Capitalised terms and abbreviations used in this Prospectus are defined in the glossary of terms contained in section 11 of this Prospectus. 1.14 Currency All monetary amounts detailed in this Prospectus are expressed in Australian dollars, unless otherwise stated. 1.15 Time All references to time in this Prospectus are references to Australian Eastern Daylight Time (AEDT), unless otherwise stated. 1.16 Rounding Any discrepancies between totals and sums and components in tables detailed in this Prospectus are due to rounding. 1.17 Withdrawal Subject to the Corporations Act, the Listing Rules and any other requirements of ASX or the law, the Directors may decide to withdraw this Prospectus and the Offers at any time prior to the allotment of New Options or to waive strict compliance with any provision of the terms and conditions of the Offers. 1.18 Enquiries Questions regarding this Prospectus or the Offers may be directed to the Company Secretary, Ms Joanna Johnson, by emailing info@acrux.com.au or by phoning (03) 8379 0100 (Australia) or +61 3 8379 0100 (New Zealand) during normal business hours. 3 2 Corporate directory Directors Mr Ross Dobinson - Chair, Non-executive Director Mr Michael Kotsanis - Managing Director and Chief Executive Officer Dr Geoffrey Brooke - Non-executive Director Mr Don Brumley - Non-executive Director Dr Tim Oldham - Non-executive Director Company Secretary Ms Joanna Johnson Registered office and principal place of business 103-113 Stanley Street West Melbourne VIC 3003 Australia Ph: (03) 8379 0100 (Australia) or +61 3 8379 0100 (New Zealand) Email: info@acrux.com.au Website: https://www.acrux.com.au/ Company’s solicitors in relation to the Offers Norton Rose Fulbright Australia Level 38, Olderfleet, 477 Collins Street Melbourne VIC 3000 Australia Share Registry Link Market Services Limited* Level 13, Tower 4, 727 Collins Street Docklands VIC 3008 Ph: 1300 554 474 (Australia Toll Free) Email: capitalmarkets@linkmarketservices.com.au *Link Market Services Limited has not been involved in the preparation of this Prospectus and is named for information purposes only 4 Table of Contents 1 2 3 4 5 Important information ..................................................................................................................................... 1 1.1 General ............................................................................................................................................. 1 1.2 Continuously quoted securities ......................................................................................................... 1 1.3 Exposure period ................................................................................................................................ 1 1.4 ASIC Instrument 2016/80 ................................................................................................................. 1 1.5 Foreign jurisdictions .......................................................................................................................... 1 1.6 Nominees and custodians ................................................................................................................ 2 1.7 Forward-looking statements ............................................................................................................. 2 1.8 Publicly available information ........................................................................................................... 2 1.9 Risk factors ....................................................................................................................................... 2 1.10 Electronic Prospectus ....................................................................................................................... 2 1.11 Investment advice ............................................................................................................................. 3 1.12 Disclaimer of representations ........................................................................................................... 3 1.13 Defined terms ................................................................................................................................... 3 1.14 Currency ........................................................................................................................................... 3 1.15 Time .................................................................................................................................................. 3 1.16 Rounding .......................................................................................................................................... 3 1.17 Withdrawal ........................................................................................................................................ 3 1.18 Enquiries ........................................................................................................................................... 3 Corporate directory ........................................................................................................................................ 4 Proposed timetable and important dates ....................................................................................................... 7 Investment overview and frequently asked questions ................................................................................... 8 Details of the Offers ..................................................................................................................................... 11 5.1 Background ..................................................................................................................................... 11 5.2 The Offers ....................................................................................................................................... 11 5.3 Offers personal ............................................................................................................................... 12 5.4 Shareholder approvals.................................................................................................................... 12 5.5 Opening Date and Closing Date ..................................................................................................... 13 5.6 How to apply for New Options under the Offers ............................................................................. 13 5.7 Minimum subscription ..................................................................................................................... 13 5.8 Maximum subscription .................................................................................................................... 14 5.9 Use of funds .................................................................................................................................... 14 5.10 No underwriting ............................................................................................................................... 14 5.11 Issue of New Options ...................................................................................................................... 14 5.12 ASX quotation ................................................................................................................................. 14 5.13 CHESS............................................................................................................................................ 15 5.14 Withdrawal ...................................................................................................................................... 15 5.15 Major activities and financial information ........................................................................................ 15 5.16 Target market determination........................................................................................................... 15 5.17 Privacy ............................................................................................................................................ 15 5.18 International offer restrictions ......................................................................................................... 16 5.19 Risk factors ..................................................................................................................................... 16 5.20 Taxation implications ...................................................................................................................... 16 5.21 Brokerage and duty ........................................................................................................................ 16 5.22 Enquiries ......................................................................................................................................... 16 5.23 Governing law ................................................................................................................................. 16 5 Purpose and effect of the Offers.................................................................................................................. 17 6.1 Purpose of the Offers...................................................................................................................... 17 6.2 Proposed use of funds .................................................................................................................... 17 6.3 Effect of the Offers .......................................................................................................................... 18 6.4 Effect on capital structure ............................................................................................................... 18 6.5 Effect on control of the Company ................................................................................................... 19 6.6 Details of substantial holders .......................................................................................................... 19 6.7 Historical and pro-forma balance sheet .......................................................................................... 19 7 Risk factors .................................................................................................................................................. 20 7.1 Introduction ..................................................................................................................................... 20 7.2 Risks associated with the New Options .......................................................................................... 20 7.3 Specific Risks associated with the Company ................................................................................. 21 7.4 General Risks ................................................................................................................................. 24 7.5 Speculative nature of investment ................................................................................................... 26 8 Rights attaching to securities....................................................................................................................... 27 8.1 New Options ................................................................................................................................... 27 8.2 Shares on exercise of New Options ............................................................................................... 29 9 Additional information .................................................................................................................................. 31 9.1 Nature of this Prospectus ................................................................................................................ 31 9.2 Continuous disclosure and documents available for inspection .....................................................31 9.3 Information excluded from continuous disclosure notices .............................................................. 33 9.4 Determination by ASIC ................................................................................................................... 33 9.5 Market price of Shares.................................................................................................................... 33 9.6 Interests of Directors ....................................................................................................................... 33 9.7 Related party transactions .............................................................................................................. 35 9.8 Interests of experts and advisers .................................................................................................... 35 9.9 Estimated Expenses of the Offers .................................................................................................. 36 9.10 Lead Managers’ mandate ............................................................................................................... 36 9.11 Consents ......................................................................................................................................... 36 10 Directors’ authorisation and consent ........................................................................................................... 37 11 Glossary....................................................................................................................................................... 38 Annexure A – Pro-forma balance sheet ................................................................................................................... 40 6 6 3 Proposed timetable and important dates Event Date* Announcement of Offers – Placement and SPP 5 December 2024 Issue of Notice of Meeting 3 January 2025 Prospectus lodged with ASIC and ASX 17 January 2025 Application for quotation of New Options issued Before 23 January 2025 Opening Date of Offers 23 January 2025 Meeting to be held to approve resolutions as outlined in the Notice of Meeting 3 February 2025 Closing Date of Offers 17 February 2025 Issue of New Options 19 February 2025 Note: These dates are indicative only and are subject to change. Subject to the requirements of the Corporations Act, the Listing Rules and other applicable law, the Company and the Directors reserve the right to amend these dates at any time, including extending the period for the Offers or accepting late Applications, either generally or in particular cases, without notice. The commencement of trading and quotation of New Options issued under the Offers is subject to confirmation from ASX. Material changes to these dates will be announced to ASX as soon as practicable. 7 4 Investment overview and frequently asked questions This section 4 is intended to highlight key information for potential investors. It is an overview only and is not intended to be a substitute for reading the Prospectus in full. Potential investors should read this Prospectus in full before deciding to invest in New Options. Question What are the Offers being made under this Prospectus? What is the purpose of the Offers? Who is eligible to subscribe under the Offers Is there a limit on how many New Options an Eligible Participant may subscribe for? Key information By this Prospectus, the Company is offering: • the SPP Options Offer, being an offer of up to 38,243,646 New Options to SPP Participants on the basis of 1 New Option for every Share subscribed for under the SPP; • the Placement Options Offer, being an offer of up to 75,714,259 New Options to Placement Participants on the basis of 1 New Option for every Share subscribed for under the Placement; and • the Lead Manager Options Offer, being an offer of 50,000,000 New Options in aggregate to the Lead Managers as part consideration for the provision of lead managerial and bookrunner services in connection with the Placement. The purposes of the Offers under this Prospectus are to: • issue the New Options under the Offers; • obtain official quotation of the New Options on ASX; • facilitate secondary trading of the New Options issued under the Offers; and • facilitate secondary trading of any Shares issued upon exercise of the New Options issued under the Offers. Only the following persons are eligible to subscribe under the Offers: • in respect of the SPP Options Offer, SPP Participants (being Eligible Shareholders who subscribed for SPP Shares under the SPP); • in respect of the Placement Options Offer, Placement Participants (being investors, including Directors, who participated in the Placement); and • in respect of the Lead Manager Options Offer, the Lead Managers. Yes, an Eligible Participant may apply for New Options as follows: • an SPP Participant may apply for up to the number of New Options equal to the number of SPP Shares subscribed for by that SPP Participant under the SPP; • a Placement Participant may apply for up to the number of New Options equal to the number of Shares subscribed for by that Placement Participant under the Placement; and • the Lead Managers may apply for 50,000,000 New Options in aggregate. Further information Section 5 Section 6.1 Section 5.3 Section 5.8 8 What is the issue price of the Offers? No issue price is payable for the grant of New Options. The New Options are being issued under the SPP Options Offer and the Placement Options Offer for no additional consideration as they are being issued on a free-attaching basis to SPP Participants and Placement Participants. The New Options are being issued under the Lead Manager Options Offer for no additional consideration as they are being issued as part consideration for services provided to the Company by the Lead Managers in connection with the Placement. Sections 5.6 and 6.2 What are the terms of the New Options? The New Options have an exercise price of $0.0525 (5.25 cents) and expire 2 years after issuance. The terms of the New Options to be issued under the Offers are the same. Refer to section 8.1 of this Prospectus for the full terms of the New Options. Section 8.1 What will the funds raised through the Offers be used for? No funds will be raised by the Company in connection with the Offers unless and until the New Options are exercised in due course. Funds raised from the Placement, the SPP and any funds raised from the exercise of the New Options will be used to support the advancement of the Company’s pipeline of topical pharmaceutical products. Specifically, the funds will be used to advance 4 key projects at the later stages of development at contract manufacturers prior to dossier submission to the FDA and to meet the ongoing working capital requirements of the Company. Section 6.2 What is the effect of the Offers on the Company’s issued securities? Assuming all New Options offered under this Prospectus are issued, the principal effect of the Offers will be that 163,957,905 New Options will be issued (being 38,243,646 New Options under the SPP Options Offer, 75,714,259 New Options under the Placement Options Offer and 50,000,000 New Options under the Lead Manager Options Offer). Further details of the impact of the Offers on the Company’s capital structure are set out in section 6.4 of this Prospectus. Sections 6.3 and 6.4 What is the effect of the Offers on control of the Company? The Offers are not expected to have a material effect on control (as defined by section 50AA of the Corporations Act) of the Company. Section 6.5 Are any Directors participating in the Offers? As Placement Participants, all Directors will be eligible to participate in the Placement Options Offer, subject to receipt of Shareholder approval at the Meeting. Section 9.6(c) Are the Offers conditional upon receipt of any approval or consent? The Offers are subject to receipt of the following Shareholder approvals at the Meeting, to be held on 3 February 2025: Sections 5.4 and 5.12 • the SPP Options Offer is subject to receipt of Shareholder approval to issue 38,243,646 New Options to SPP Participants under Listing Rule 7.1; • the offer to issue New Options to Placement Participants (other than Directors) is subject to receipt of Shareholder approval to issue 71,428,547 New Options under Listing Rule 7.1; • the offer to issue New Options to Placement Participants who are Directors is subject to receipt of Shareholder approval to issue 4,285,712 Shares under the Placement and 4,285,712 New Options to Directors under Listing Rule 10.11; and 9 the Lead Manager Options Offer is subject to receipt of Shareholder approval to issue 50,000,000 New Options under Listing Rule 7.1. The Company will announce the results of the Meeting on ASX. In addi