Stock Information and Capital Raisings.Q S1: What is the ticker...

Stock Information and Capital Raisings
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Q S1: What is the ticker symbol for Opthea, and where is it listed?
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A: Opthea is listed on the Australian Securities Exchange (ASX) under the ticker symbol OPT. It is also listed on the Nasdaq Global Select Market in the U.S. under the ticker OPT. One Nasdaq OPT share is equivalent to eight shares of OPT on the ASX. As of the latest available data:

• OPT.AX on the ASX is priced at A$0.585 per share.
• OPT on Nasdaq is priced at US$3.086 per share (approximately A$4.62 based on the current exchange rate).

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Q S2: What is OPTOA?
A:OPTOA represents options for shares in Opthea Limited with an exercise price of A$0.80 per share, expiring on September 30, 2025. These options were created during the capital raising in September 2023. Approximately 98 million OPTOA options were issued, potentially raising A$78.4 million if fully exercised. As of the latest available data, OPTOA is priced at A$0.26 per option.

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Q S3: What is OPTOB?
A:OPTOB represents another series of options for shares in Opthea Limited with an exercise price of A$1.00 per share, expiring on June 30, 2026. These options were created during the capital raising in June 2024. Approximately 189.4 million OPTOB options were issued, potentially raising A$189.4 million if fully exercised. As of the latest available data, OPTOB is priced at A$0.15 per option.

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Q S4: What are the key dates and share numbers for Opthea's capital raisings?
A: Opthea conducted significant capital raisings in recent years:

• September 2023: Issued approximately 160 million shares to institutional investors and 16 million shares to retail investors at an offer price of A$0.46 per share, raising a total of A$82 million. During this capital raising, the OPTOA options were created.
• June 2024: Conducted another capital raising, including a Placement and an Institutional Entitlement Offer, raising approximately A$171.5 million (US$113.2 million), with a retail component expected to raise an additional A$55.9 million (US$36.9 million). During this capital raising, the OPTOB options were created.

Combined, these funds are critical for funding the ongoing development and trials of Sozinibercept (OPT-302). Further capital raising may be required by 2026 to support the FDA approval process and potential commercialization.

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Q S5: What is a Development Funding Agreement (DFA), and how does it impact Opthea's financial strategy?
A: A Development Funding Agreement (DFA) is a financial arrangement where an investment firm provides non-equity funding to a company, typically to support the development of a specific product or technology. In return, the company agrees to repay the funding based on future revenue or success milestones, without giving up equity.

Opthea entered into a DFA with Launch Therapeutics, a specialized investment vehicle created by Carlyle and Abingworth, in August 2022, with an amendment in December 2023. This agreement provided US$170 million in non-equity funding to support the development of Sozinibercept for wet AMD. The repayment is capped at US$680 million, which is four times the initial funding amount, potentially resulting in a 300% gain for Launch Therapeutics if all repayment conditions are met.

The repayment structure includes fixed payments of US$113.33 million annually over six years, along with variable payments of 7% of net revenues generated by Sozinibercept. Importantly, no repayment is required if the clinical trials fail or if regulatory approval is not received, which mitigates some financial risk for Opthea. However, if Sozinibercept is successful, the imputed interest rate of approximately 23% highlights the high cost of this funding. This liability is significant and could impact Opthea’s financial strategy, particularly in managing cash flow and shareholder value.

It’s worth noting that Carlyle and Abingworth, through Launch Therapeutics, are in the business of making substantial returns on their investments. Their decision to provide this level of funding indicates that they have conducted a deep analysis of Opthea’s science and believe that Sozinibercept has strong potential for success.
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Q S6: Who are Carlyle and Abingworth, and what is their role in Launch Therapeutics?
A: Carlyle and Abingworth are prominent investment firms with a focus on the healthcare and life sciences sectors.

• Carlyle Group: Carlyle is a global investment firm with a diverse portfolio, managing over $300 billion in assets across various industries, including healthcare. The firm has a strong track record of investing in innovative companies and helping them scale through strategic partnerships, financial backing, and operational support.

• Abingworth: Abingworth is a leading transatlantic venture capital firm focused on life sciences. With over 40 years of experience, Abingworth has a deep understanding of the biopharmaceutical industry and a history of successfully backing companies through all stages of development, from startup to commercialization.

Together, Carlyle and Abingworth formed Launch Therapeutics, a specialized investment vehicle aimed at providing late-stage funding to biopharmaceutical companies like Opthea. Their combined expertise and financial resources help bridge the gap between clinical development and commercial success, allowing companies to advance innovative therapies toward the market. Their investment also reflects their confidence in the potential success of Sozinibercept, as they are highly motivated to generate significant returns.

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