- RE-ITERATE BUY Entry 0.180 – Target – 0.200 Stop Loss – 0.172
- iX Biopharma Ltd is a specialty pharmaceutical and nutraceutical company, operating a fully integrated business model from drug development to manufacturing and supply, with facilities in Australia. iX Biopharma focuses on the development and commercialisation of therapies for diseases of the central nervous system using its novel, patent-protected platform sublingual drug delivery technology, WaferiX.
- Expects to place out 13.7m new shares at 11% premium to last close. IXBIO recently inked an agreement with C2C Biopharma to place out 13.7m new shares or 1.8% of its enlarged share capital at S$.20 apiece to raise S$2.7m. The subscription price was at a 15% premium to the VWAP of S$0.1743/share at the point of announcement, indicating substantial bullishness from the placee’s perspective. IXBIO intends to use 60% of the net proceeds to develop, manufacture and market its cannabis business into new markets such as the US. The remaining 40% will be used for general working capital.
- IXBIO’s track record of partnerships has been fairly positive. IXBIO believes that C2C Biopharma will be able to help it generate new opportunities both in the US and Cambodia, given its >20 years of experience in both countries. Its track record of partnerships has been decent, with the previous out-licensing agreement of Wafermine to Seelos Therapeutics back in November 2021 bearing fruit and contributing to its strong turnaround to profitability. The sole house covering the stock noted that the agreement then was a significant breakthrough in the monetisation of its Wafermine drug.
- Turnaround story to gather pace as Wafermine in a nascent stage. 1H22 results saw a stunning turnaround to profitability of S$4.5m after IXBIO recognised S$9m in revenue from Seelos. Looking at FY21’s net loss of S$8.2m, we believe that IXBIO’s FY22F financials will likely remain profitable even as its various other drug platforms gain more sales traction.
