CORRECTION: Propanc Biopharma Announces Strategic Financing Agreement of up to $100 Million with Hexstone Capital

Rhea-AI Summary

Propanc Biopharma (PPCB) announced a strategic financing agreement with Hexstone Capital on October 15, 2025 providing up to $100 million of potential funding.

Key terms include issuance of 100 shares of Series C Convertible Preferred Stock for an initial $1.0 million (stated value $10,000 each) convertible at an initial price of $5.00 per share (a 280% premium to the recent $1.78 close). Propanc also issued 9,900 warrants to buy Preferred Stock at $9,999.99 each (up to $99 million), exercisable immediately for 12 months. The conversion includes variable alternative prices and a 4.99% beneficial ownership limitation. The agreement allows the company to call up to 500 warrants per month for $0.01 each (up to $5 million preferred stock per month), subject to equity and ownership limits. SEC Form 8-K contains full details.

Positive

• Potential funding capacity of $100 million
• Initial committed investment of $1.0 million
• Warrants provide up to $99 million immediate raise opportunity
• Initial conversion price set at $5.00 per share (280% premium)

Negative

• Conversion and warrant exercises may cause significant dilution to common shareholders
• Beneficial ownership cap of 4.99% may constrain single-investor stake and transaction flexibility
• Monthly call provision could convert up to $5 million preferred per month, increasing near-term dilution risk

Initial Conversion Price of $5.00 Per Share Representing a 280% Premium Over the Company’s Recent Closing Price of $1.78

MELBOURNE, Australia, Oct. 15, 2025 (GLOBE NEWSWIRE) -- Propanc Biopharma, Inc. ("Propanc" or the "Company") is pleased to announce it has entered into a strategic financing agreement of up to $100 million with Hexstone Capital LLC ("Hexstone"), a family office that has invested in a significant number of Digital Asset Treasury (DAT) companies across a range of digital assets including BTC, ETH, SOL, DOGE, ATH, OG, and INJ. “We are delighted to enter into this strategically important transaction with Hexstone Capital,” said James Nathanielsz, Chief Executive Officer of Propanc. “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. In less than five years, DAT companies have evolved from being market curiosities to becoming significant players in the digital asset ecosystem. We believe we are well-positioned to capitalize on this trend and generate both short- and long-term value for shareholders.”

Transaction Overview

Under the terms of the agreement, Propanc will issue 100 shares of newly designated Series C Convertible Preferred Stock, each with a par value of $0.01 and an initial stated value of $10,000, resulting in an initial investment of $1 million.

The Preferred Stock is convertible into Common Stock at an initial conversion price of $5.00 per share, representing a 280% premium over the Company’s recent closing price of $1.78. The conversion terms include variable alternative conversion prices and are subject to a 4.99% beneficial ownership limitation, as detailed in the Company’s filings with the U.S. Securities and Exchange Commission (SEC).

Additionally, Propanc will issue 9,900 Warrants to Hexstone, each entitling the purchase of one share of Preferred Stock at $9,999.99, totaling up to $99 million in potential funding. The Warrants are exercisable, immediately, and will remain valid for 12 months. Subject to equity conditions and beneficial ownership limits, the Company may call up to 500 Warrants per calendar month at $0.01 each, allowing up to $5 million in Preferred Stock per month—less any Warrants already exercised by Hexstone during that period.

Further details can be found in the Company’s Form 8-K filed with the SEC and accessible at www.sec.gov.

About Propanc Biopharma, Inc.

Propanc Biopharma, Inc. is developing a novel therapeutic approach aimed at preventing the recurrence and metastasis of solid tumors by leveraging the anti-cancer potential of pancreatic proenzymes. The Company’s lead product candidate targets and eradicates cancer stem cells in patients suffering from pancreatic, ovarian, and colorectal cancers.

The therapy is based on the concept that pancreatic enzymes, known to stimulate essential biological reactions in the body, may serve as a natural defense mechanism against cancer.

For more information, please visit www.propanc.com.

Forward-Looking Statements

All statements in this press release that are not historical are forward-looking statements, including, among other things, statements relating to the Company’s expectations regarding its market position and market opportunity, expectations and plans as to its product development, manufacturing and sales, and relations with its partners and investors, made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are not historical facts but rather are based on the Company’s current expectations, estimates, and projections regarding its business, operations and other similar or related factors. Words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “predict,” “potential,” “continue,” “expect,” “intend,” “plan,” “project,” “believe,” “estimate,” and other similar or related expressions are used to identify these forward-looking statements, although not all forward-looking statements contain these words. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, and assumptions that are difficult or impossible to predict and, in some cases, beyond the Company’s control. Forward-looking statements are not guarantees of future actions or performance. Actual results may differ materially from those in the forward-looking statements because of a number of factors, including, without limitation, risks and uncertainties related to market conditions, as well as those risks described under “Risk Factors” in the prospectus related to the proposed offering and those described in the Company’s filings with the SEC. The Company undertakes no obligation to revise or update information in this release to reflect events or circumstances in the future, even if new information becomes available.

Company:
Propanc Biopharma, Inc.
James Nathanielsz
+61-3-9882-0780
info@propanc.com
Investor Contact:
irteam@propanc.com

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.