Agreement to Return US$2M to Obsidian

Key points

• Paradigm Biopharmaceuticals to return US$2M to Obsidian
• Agreement follows Tranche 4 drawdown on 11 September 2026
• No additional payment required by Paradigm
• Review of Phase 3 clinical trial data ongoing
• Implications for clinical development program under evaluation

Full summary

Paradigm Biopharmaceuticals Ltd. has agreed to return the US$2 million received under the Tranche 4 drawdown and cancel the 2,000,000 Convertible Notes issued in connection with that drawdown. The drawdown was intended to support ongoing Phase 3 clinical trial activities, including clinical operations, data management, and regulatory activities. The agreement to return the funds has been reached while Paradigm continues to assess the implications of the interim analysis of its Phase 3 clinical trial, PARA_OA_012, evaluating injectable pentosan polysulfate sodium (iPPS) for the treatment of knee osteoarthritis.