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Biotron (ASX:BIT) has been forced to explain its position to ASX Compliance after being queried by the regulator over why it didn’t classify as ‘price sensitive’ an announcement foreshadowing potential bankruptcy.
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The answer? Human error. Literally – the company ticked the wrong box.
“The announcement was considered by the company to be market sensitive… Unfortunately, during lodgement of the announcement, the wrong box… was pressed. This was a human error,” Biotron wrote on Tuesday.
Checkmate, regulators.
As for additional concerns that the company didn’t make price sensitive a share purchase plan announcement, there too the regulator is worrying unduly – because Biotron made it clear it’s since changed that to a rights issue.
(“As a result this question is no longer relevant,” it added, despite the fact it still needs $500,000 regardless of how it raises it.)
The last time Biotron undertook a capital raising was back in November 2022 when it raised funds to undertake COVID clinical trials and complete two second stage HIV-2 studies.
Of course, many biotech companies got left stranded by the tide of COVID, which really only lasted three years from a lockdowns point of view.
The healthcare nanocap, which has long been trying to focus its efforts on a range of diseases, has been one that’s missed out on the biotech rally visible from late 2024 to 2025.
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This prompted Biotron to swing back to its financial position.
“There was always a possibility that additional capital would be required to fund the next stage of development/activities now that the Phase 2 trials are completed, as was disclosed at the time, and which is standard in the industry and with a R&D company that does not have revenues,” Biotron wrote.
For now, its rights issue is underwritten for $750,000 by Mahe Capital.
BIT last traded at 0.4cps.
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