• Successful capital raising of $3.9m through exercise of options and placement
• Strengthens working capital position as company scales commercial portfolio and advances R&D pipeline
• Proforma cash balance of ~$5.6m, alongside $3m receivables-based debt facility

Algorae Pharmaceuticals Ltd (ASX: 1AI) has announced that it has successfully raised $3,988,183 (before costs), comprising 242,998,655 shares issued on the exercise of 1AIO listed options between November 2025 and March 2026, and 89,350,001 shortfall placement shares to sophisticated, long-term shareholders of the Company at $0.012 (1.2 cents) per share under the Company's available placement capacity. The issue price of the placement shares represents a 25% discount to the last trading price and a 30.64% discount to the 5-day Volume Weighted Average Price. The net proceeds will significantly strengthen the Company's working capital position as it scales its commercial portfolio under AlgoraeRx and advances its R&D pipeline under AlgoraeOS, both key pillars of Algorae's growth strategy. Following the capital raising, the Company holds a proforma cash balance of approximately $5,560,000, alongside a $3,000,000 receivables-based debt facility with ScotPac. The strengthened balance sheet positions Algorae to capitalise on the commercial and scientific momentum generated over recent months.

The Company has not provided any high-importance, price-sensitive forward-looking financial metrics or other company-specific metrics.

The Company looks forward to providing further updates as these initiatives progress.