INSILICO Completes US$305 Million Zero-Coupon Convertible Bond Offering, Targets R&D Expansion and AI Drug Discovery

Bulletin Express09-03 22:23

InSilico Medicine Cayman TopCo (INSILICO) has closed the issuance of US$305.00 million zero-coupon convertible bonds due 2027 under its general mandate, after all conditions precedent in the subscription agreement were satisfied on 3 September 2026. Net proceeds amount to US$301.60 million after commissions and expenses. An application has been lodged for trading on the Vienna MTF, expected to begin on or around 4 September 2026, while approval has been secured for listing the conversion shares on the Hong Kong Stock Exchange.

Share-capital impact • Current issued shares: 583.01 million. • Full conversion at the initial price of HK$58.07 per share would create 41.17 million new shares, expanding the total to 624.19 million. • Post-conversion, bondholders would own 6.60 % of issued capital; founder Alex Zhavoronkov’s stake would dilute from 7.30 % to 6.82 %.

Use of proceeds (US$301.60 million) 1. Clinical trials and R&D for key pipeline assets – 40 % (US$120.70 million). • ISM6166 pan-KRAS inhibitor: US$51.20 million • ISM9077 (Target Y) small-molecule inhibitor: US$33.50 million • ISM9528 (Target Z) brain-penetrant inhibitor: US$30.00 million • Other pipeline projects: US$6.00 million Expected utilisation: by 31 December 2030.

2. Expansion of global R&D team – 30 % (US$90.50 million) to hire over 200 researchers across Hong Kong, Boston, Abu Dhabi and Shanghai by end-2028.

3. Development of state-of-the-art foundation AI models for target discovery and longevity-related diseases – 15 % (US$45.20 million) by end-2027.

4. Working capital and corporate purposes – 15 % (US$45.20 million) by end-2030.

Liquidity context As at 30 June 2026, INSILICO held US$584.80 million in cash and short-term investments. Management views the additional funds as essential to support the capital-intensive, project-based R&D model, provide flexibility for late-stage clinical trials, and sustain a dual engine of AI platform development and in-house drug discovery.

Unutilised proceeds will be placed in short-term interest-bearing accounts with licensed financial institutions. The company will complete the requisite CSRC filings following the bond issue.

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