• Botanix received firm commitments for a ~A$40 million two-tranche Placement
• The Company also intends to offer a security purchase plan underwritten up to A$5 million
• Proceeds will support API purchases, alternate supplier setup, advertising, and working capital

Botanix Pharmaceuticals Limited (ASX:BOT) has received firm commitments for a ~A$40 million two-tranche Placement, strongly supported by existing and new institutional and sophisticated investors. The Company also intends to offer a security purchase plan underwritten up to A$5 million. The proceeds will be used towards API purchases and manufacturing components, alternate API supplier setup, advertising and marketing initiatives, operating expenses, and working capital. The successful capital raising strengthens the Company's position to deliver on its strategic initiatives, including continued Sofdra growth, adding new products, securing API supply, and expanding Sofdra licensing. The Company is in advanced negotiations with its existing API supplier and alternate suppliers to smooth future cash outflows and decrease the cost of goods sold. Establishing an alternate supplier is a key priority as it represents a potential 25% - 40% reduction in COGS.

The Company is experiencing strong quarter-on-quarter growth since the launch of Sofdra and expects the targeted funds raised will allow it to derisk its supply chain and secure API under its current supply contract.

The Company is at an exciting stage of development and looks forward to its shareholders' continued support under the security purchase plan and welcoming new investors to its register. The successful capital raising strengthens the Company's position to deliver on its strategic initiatives, including continued Sofdra growth, adding new products, securing API supply, and expanding Sofdra licensing.