It’s been 9 months in the making, and a good deal of hard work, but finally our US subsidiary, Nyrada, Inc. is launched with the successful closing of a $4M capital raise.
What does Nyrada mean to me as a NOX shareholder?
As a NOX shareholder, through NOX, you now have a ‘stake’ in a new company. It hasn’t cost you anything and your shareholding in NOX hasn’t been diluted as a result.
Nyrada has been created to add value to certain NOX assets that, had they remained within NOX, were destined to sit on the shelf for a long time. The need to focus on the main game (bringing NOX66 to market as an important new cancer therapy) was always going to mean that anything else would be a distraction.
Rather than let that potentially valuable opportunity lapse, those ‘distractive’ assets now have a separate home and an independent means of being developed. And, in time, we hope realising a value that will flow back to NOX shareholders.
As a NOX shareholder, how does Nyrada benefit me?
Nyrada has been established purely and simply for the benefit of NOX shareholders. That is our starting position. There are no certainties in the investment world and I can’t make any promises, but two potential ways come to mind via the current cross-shareholding arrangement.
The first potential way is through market valuation. NOX owns two-thirds of Nyrada. That means that whatever value we can create in Nyrada by way of market value is an asset that has the opportunity to be reflected pro rata in the NOX market value.
The second possible way is through the usual benefits that pass back to any shareholder in a successful company by way of dividends, returns of capital or simply share value growth. In this case the shareholder being the company, Noxopharm, which then has the potential opportunity to pass this benefit through to you as a shareholder.
That is the starting logic in this process.
Who are the shareholders in Nyrada?
Currently there are only 2 shareholders. Noxopharm holds 66.7% of the shares and Altnia Holdings Pty Ltd holds 33.3%. This is the result of Nyrada acquiring 2 drug programs from Noxopharm and 1 drug program from private Australian biotech company, Altnia Holdings in return for shares in Nyrada.
That shareholding structure will change when the Convertible Notes that we issued in the recent $4M capital raise are converted to Nyrada shares. That conversion occurs automatically when Nyrada lists on a public stock exchange, as planned for the ASX.
The Convertible Notes involve a mix of shares and options. If all shares are taken up and all options exercised, then the final shareholding will be approximately Noxopharm (55.6%), Altnia (28.2%) and Note Shareholders (16.2%).
What can I expect to see over the coming 12 months?
We intend to keep our NOX shareholders updated on R&D progress within Nyrada. For as long as Nyrada remains majority owned by NOX and unlisted, then in accordance with its continuous disclosure obligations, NOX will be releasing publicly any information that it regards as ‘market sensitive’ and material to NOX shareholders.
What are the Company’s long-term goals?
For a more comprehensive story, I encourage you to go to the Nyrada website www.nyrada.com and read the latest Newsletter.
These are our clinical objectives:
- A drug that will be administered intravenously to a patient following a stroke or a severe epileptic seizure, with the aim of limiting the degree of brain damage to a level from which the patient is more likely to recover.
- An anti-inflammatory drug to relieve suffering in patients suffering peripheral neuropathy (about 40% of patients receiving certain chemotherapy drugs; about 20% of patients with Type 1 diabetes).
- A readily-administered, oral drug to lower blood cholesterol levels for individuals who do not use standard statin drugs either because they are unsafe or are not sufficiently effective.
Where is the Company’s up to in these goals?
In summary, the Company’s position is:
- 3 drug candidates identified, all first-in-class.
- 3 clinical indications identified and strategies in place with the aim of bringing all 3 drug candidates into the clinic.
- each target indication addresses a substantial unmet medical need.
- a vigorous patent strategy is in place to protect the Intellectual Property.
- the necessary executive and scientific staff is in place to conduct 3 R&D programs.
- a founding Board is appointed, with additional directors (independent) to be recruited over the coming months both in Australia and the USA.
- a world-class Scientific Advisory Board is being assembled.
What is Nyrada currently worth?
The only true test of this will come once the company publicly lists.
Pre-raise, the NOX Board valued the 3 Nyrada assets at AUD$40M and the recent $4M capital raise was based on that value.
Our objective is to list Nyrada on the back of progress in its R&D programs, and obviously we will be aiming to see that progress reflected in a premium to that pre-money valuation.