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Oct 15, 2025 – 05:45 PM
Propanc Biopharma Secures Up to $100 Million in Strategic Financing from Hexstone Capital
MELBOURNE, Australia, Oct. 15, 2025 — Propanc Biopharma (PPCB) announced a transformative financing agreement with Hexstone Capital, a family office with a significant portfolio in Digital Asset Treasury (DAT) companies. The deal, finalized on October 15, 2025, provides Propanc with access to up to $100 million in potential funding, earmarked for accelerating the development of its clinical pipeline and expanding its footprint in the burgeoning digital asset market.
Key Terms of the Agreement
The financing hinges on the issuance of 100 shares of Series C Convertible Preferred Stock, priced at an initial $1.0 million (with a stated value of $10,000 per share). These shares are convertible into Common Stock at a price of $5.00 per share—a substantial 280% premium over Propanc’s recent closing price of $1.78. This premium reflects Hexstone’s confidence in Propanc’s long-term prospects and potential for growth.
In addition to the preferred stock, Propanc will issue 9,900 warrants to Hexstone, allowing the purchase of Preferred Stock at $9,999.99 each, potentially unlocking up to $99 million in additional funding. These warrants are immediately exercisable and will remain valid for 12 months. The conversion terms also include variable alternative pricing mechanisms and a 4.99% beneficial ownership limitation, ensuring a balanced investor structure.
The agreement also grants Propanc the option to call up to 500 warrants per month at a nominal price of $0.01 each, allowing the company to raise up to $5 million in Preferred Stock per month, subject to equity conditions and ownership limits. This structure provides Propanc with flexibility in managing its capital needs and leveraging market opportunities.
Strategic Rationale and Implications
James Nathanielsz, CEO of Propanc, emphasized the strategic importance of the transaction, stating, “This financing will allow us to accelerate the development of our clinical pipeline and leverage Hexstone’s previous investments in companies that have also built out Digital Asset Treasuries. Our goal is to grow our treasury to a value of $100 million or more within the next twelve months.”
Propanc’s foray into Digital Asset Treasuries underscores a growing trend among biotech companies to diversify their financial strategies and capitalize on emerging asset classes. By aligning with Hexstone, a prominent player in the DAT sector, Propanc aims to not only secure crucial funding but also gain expertise and access to a rapidly evolving market.
Analysts note that this financing could significantly bolster Propanc’s research and development efforts, particularly in its lead product candidate aimed at preventing the recurrence and metastasis of solid tumors, targeting cancer stem cells in patients with pancreatic, ovarian, and colorectal cancers. The company’s therapeutic approach, based on the anti-cancer potential of pancreatic proenzymes, represents a novel strategy in oncology.
Potential Risks and Considerations
While the financing agreement presents significant opportunities, it also introduces potential risks. The conversion of preferred stock and the exercise of warrants could lead to substantial dilution for existing common shareholders. The 4.99% beneficial ownership cap may also restrict the flexibility of future transactions and limit the potential stake of a single investor.
Moreover, the monthly call provision, while providing short-term capital access, could increase near-term dilution risk if exercised aggressively. Investors should carefully consider these factors and review Propanc’s filings with the SEC for a comprehensive understanding of the terms and implications of the agreement.
For more details, refer to the company’s Form 8-K filed with the SEC, available at www.sec.gov.
About Propanc Biopharma, Inc.
Propanc Biopharma, Inc. is focused on developing new therapeutic approaches designed to prevent the recurrence and metastasis of solid tumors. The company’s lead product candidate leverages the anti-cancer potential of pancreatic proenzymes to target and eradicate cancer stem cells in patients suffering from pancreatic, ovarian, and colorectal cancers. The therapy is based on the concept that pancreatic enzymes may serve as a natural defense mechanism against cancer.
For more information, please visit www.propanc.com.
Forward-Looking Statements
This press release contains forward-looking statements that are subject to risks and uncertainties. These statements are based on the company’s current expectations and projections regarding its business, operations, and market opportunities. Actual results may differ materially from those projected in the forward-looking statements due to various factors, including market conditions, regulatory approvals, and the company’s ability to execute its strategic plans.
FAQ
What financing did Propanc (PPCB) announce on October 15, 2025?
Propanc announced a strategic financing with Hexstone Capital providing up to $100 million via issuance of Series C preferred and 9,900 warrants.
What are the conversion terms for Propanc’s Series C preferred in the Hexstone deal (PPCB)?
The preferred is convertible at an initial $5.00 per share conversion price, with variable alternative conversion prices and a 4.99% beneficial ownership limit.
How much immediate capital can Propanc raise from the Hexstone warrants (PPCB)?
The 9,900 warrants are exercisable immediately at $9,999.99 each, representing up to $99 million in potential funding over 12 months.
When are the Hexstone warrants exercisable and for how long for Propanc (PPCB)?
The warrants are exercisable immediately and remain valid for 12 months from issuance.
What is the near-term dilution risk to Propanc (PPCB) shareholders from this transaction?
Dilution risk arises from conversion of preferred at $5.00 and potential exercise of warrants totaling up to $99 million, plus monthly calls up to $5 million preferred.
Where can investors find the full legal terms of the Propanc (PPCB) financing with Hexstone?
Full terms are disclosed in Propanc’s Form 8-K filed with the SEC, available at www.sec.gov.
