• Successful $14.0 million Placement completed, significantly upsized from initial $8.0 million target
• Share Purchase Plan launched to raise up to $2.0 million for eligible shareholders
• Pro forma cash of ~$45 million to fund Phase 3 PARA_OA_012 trial through interim analysis and NDA submission

Paradigm Biopharmaceuticals Ltd (ASX: PAR), a late-stage drug development company, has announced the successful completion of a $14.0 million Placement to institutional and sophisticated investors, together with a Share Purchase Plan to raise up to an additional $2.0 million. The Placement was significantly upsized from the initial $8.0 million target due to strong demand from both existing and new institutional investors. The capital raising strengthens the Company's balance sheet and provides funding flexibility through the upcoming interim analysis and into the post-interim period, including reduced reliance on the Company's existing convertible note facility and access to additional capital through the attaching option structure. The funds will be used to support the continued execution of Paradigm's Phase 3 PARA_OA_012 clinical trial, NDA-related activities, partial repayment of the Obsidian Convertible Note Facility, and working capital. The Company expects the April 2026 pro forma cash balance post Placement completion to be approximately $45 million. This funding is expected to support operations through the interim analysis and extend runway into the post-interim period, with current forecasts indicating funding through to the end of CY2026, excluding any proceeds from the exercise of attaching options.

The Company expects the April 2026 pro forma cash balance post Placement completion to be approximately $45 million. This funding is expected to support operations through the interim analysis and extend runway into the post-interim period, with current forecasts indicating funding through to the end of CY2026, excluding any proceeds from the exercise of attaching options.

The strong demand for the Placement, resulting in it being significantly upsized, reflects growing investor confidence in Paradigm's Phase 3 program and the upcoming interim analysis. This capital raising positions the Company to continue executing its global Phase 3 clinical trial through key data milestones, including interim analysis, which is seen as a critical period for the Company as it approaches a major value inflection point.