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

Rhea-AI Summary

Propanc Biopharma (PPCB) entered a strategic financing agreement with Hexstone Capital on Oct 15, 2025 for up to $100 million in potential funding.

Under the terms, Propanc will issue 100 shares of Series C Convertible Preferred Stock for an initial stated value of $10,000 each (initial investment $1 million). The Preferred is convertible at an initial price of $5.00 per share. The release describes that conversion price as a 280% premium in the headline and a 28% premium in the body versus a recent closing price of $1.78. Propanc also issued 9,900 warrants exercisable immediately to buy Preferred Stock at $9,999.99 each, representing up to $99 million of additional funding; warrants expire in 12 months. The agreement includes a 4.99% beneficial ownership limit and a company option to call up to 500 warrants per month at $0.01, enabling up to $5 million of Preferred issuance per month, subject to equity conditions. More details are in the company Form 8-K filed with the SEC.

Positive

• Up to $100 million potential financing capacity
• Initial $1 million committed via 100 Series C preferred shares
• Immediate access to capital via 9,900 warrants exercisable now
• Convertible preferred at $5.00 initial conversion price

Negative

• 4.99% beneficial ownership limit may constrain Hexstone funding and timing
• Warrants expire in 12 months, creating near-term exercise/dilution pressure
• Monthly call feature could enable up to $5 million Preferred issuance per month, increasing dilution risk

Insights

Corporate Finance Analyst

Propanc secures a financing framework that can provide up to $100,000,000, but near-term dilution and conditional mechanics create material uncertainty.

The transaction issues 100 shares of Series C Convertible Preferred Stock with an initial stated value of $10,000 each (initial investment $1,000,000) and an initial conversion price of $5.00 per share, alongside 9,900 Warrants exercisable into Preferred Stock representing up to $99,000,000 of additional capacity. This structure delivers immediate committed capital of $1,000,000 and an option pool that can convert into substantial funding if exercised; the agreement includes a 4.99% beneficial ownership limit and a monthly call feature allowing up to 500 Warrants to be called at $0.01 each (up to $5,000,000 of Preferred Stock per month), subject to equity conditions.

The principal dependencies and risks are clear and factual: conversion mechanics and warrant exercise create potential dilution that hinges on future decisions by Hexstone and the company; the immediate funding is small relative to the $100,000,000 headline and the larger amount is contingent on warrant exercise and other conditions. Watch the company’s SEC filings for the exact conversion mechanics, the schedule and use of any called Warrants, and any equity-condition waivers. Monitor outcomes over the next 12 months given the warrants' one-year life and the company’s stated treasury-growth timeframe.

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 28% 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 Oct 15, 2025?

Propanc entered a strategic financing agreement with Hexstone for up to $100 million in potential funding, including 100 Series C preferred shares and 9,900 warrants.

How much did Hexstone initially invest in Propanc (PPCB)?

The initial investment is $1 million via 100 newly designated Series C Convertible Preferred shares with a stated value of $10,000 each.

What are the conversion and warrant terms in the Propanc (PPCB) deal?

Preferred is convertible at an initial $5.00 per share conversion price; 9,900 warrants are exercisable immediately at $9,999.99 per warrant and expire in 12 months.

Does the Propanc (PPCB) agreement limit Hexstone's ownership stake?

Yes; the conversion terms include a 4.99% beneficial ownership limitation on Hexstone's holdings.

How could the warrants affect Propanc (PPCB) shareholders?

If exercised, the 9,900 warrants could provide up to $99 million in funding but would cause dilution; the company can also call up to 500 warrants per month at $0.01 to convert into Preferred.

Where can investors find the full legal terms of the Propanc (PPCB) financing?

Full terms are disclosed in Propanc's Form 8-K filed with the SEC and available at www.sec.gov.