Artrya opened its share purchase plan (SPP) yesterday, which accompanies the group’s $75 million private placement to sophisticated and institutional investors. The SPP allows existing investors (as of record date 8th September) to purchase up to $30,000 worth of shares at the same issue price as the placement ($2.05).
The company reserves the right to accept over subscriptions or to scale back the offer. Given the group’s shares closed at $2.35 today, we expect strong demand.
Shareholder wishing to participate must follow the instructions on their personalised Application Form, which is available at portal.automic.com.au/investor/home. For full details of the offer, see Artrya’s Share Purchase Plan Offer.
Applications must be submitted by the 3rd October 2025.
As previously announced, management intends to use the funds to accelerate into the US market:
It’s not yet clear at what rate management intends to increase spending. In FY24 and FY25, total operating costs were $16.1 million and $20.9 million, respectively. At the full-year results, AYA confirmed its intention to be cash flow positive by FY27. Given the group’s historic rate of spending, it’s difficult to imagine the company will burn through $80 million in cash within the next two years. No doubt this question will be raised at the shareholder meeting in October.
On Monday, Artrya issued 29.4 million shares worth $60 million, as part of the first tranche of its placement to sophisticated investors.
The second tranche of the place, raising approximately $15 million through the issue of 7.2 million shares, is subject to shareholder approval at a general meeting expected to be held on or around 24 October.
Following the issuance of tranche 1 shares, approximately 19% of the outstanding shares are owned by insiders, and tranche 1 investors will own an additional 20%, totalling 39% of the shares outstanding. We’d expect both groups to support the motion to issue the second tranche, and as such, it’s highly unlikely the motion won’t pass.
However, it will be interesting to see how many shareholderscast a protest vote.
For a more detailed discussion of Artrya’s capital raise, see Artrya: Closes $75 million placement & valuation reduced to $3.06.