On July 30, 2024 the Group completed the issue of $426,140,000 (A$650,000,000) in convertible bonds maturing in
2029. The bonds were convertible into fully paid ordinary shares in Telix Pharmaceuticals Limited. The initial conversion
price of the convertible bonds was A$24.78 per share, subject to anti-dilution adjustments set out in the final terms and
conditions of the convertible bonds. The net proceeds were $416,324,000, after transaction costs.
The convertible bonds bore interest at a rate of 2.375 per cent per annum. Interest was payable quarterly in arrears on
October 30, January 30, April 30 and July 30 in each year, beginning on October 30, 2024. The convertible bonds would
have matured on or about July 30, 2029.
On December 17, 2024, the Group entered into an agreement with HSBC Bank Australia Limited ("HSBC") to obtain a
working capital facility of up to $34,435,000 (A$50,000,000). To date, the Group has not utilized this facility and has
incurred establishment fee costs of $98,000 (A$150,000) associated with the facility. The working capital facility is
secured by a cash security deposit on an interest-bearing term deposit of $34,435,000 (A$50,000,000) held by HSBC
with a maturity date equivalent to the term of the facility. There are no financial covenants associated with the facility.
On April 15, 2026, the Group announced the successful settlement of the issue of US$600,000,000 1.50 per cent
Convertible Notes due 2031 (New Bonds). The Group concurrently completed the on-market repurchase of
approximately A$637,000,000 in principal of the A$650,000,000 2.375% Convertible Bonds due 2029 issued by Telix in
July 2024 (Existing Bonds). The Existing Bonds repurchased represent approximately 98% of the outstanding Existing
Bonds. In May 2026, we repurchased a further A$5 million of the Existing Bonds. The New Bonds are listed on the
Singapore Exchange Securities Trading Limited (SGX-ST).
The New Bonds bear interest at a rate of 1.50 per cent per annum. Interest is payable quarterly in arrears on January 22,
April 22, July 22 and October 22 in each year, beginning on July 22, 2026. The New Bonds will mature on or about
April 22, 2031, unless redeemed, repurchased, or converted in accordance with their terms.
Funding requirements
We believe that our existing cash resources and cash that we expect to generate from sales from the Precision Medicine
and Manufacturing Solutions businesses will be sufficient to meet our projected operating expenses and capital
expenditure requirements for at least the next 12 months. Our expectations regarding our short-term and long-term
funding requirements are based on assumptions that may prove to be wrong, and we may need additional capital
resources to fund our operating plans and capital expenditure requirements.
We expect our expenses to increase in connection with our ongoing activities, particularly as we continue the
commercialization of products for which we receive regulatory approval and continue clinical development of our
therapeutic product candidates. We expect to finance our operating activities through cash generated from commercial
sales, existing cash and cash equivalents and financing activities, which may include equity offerings, debt financings,
collaborations, strategic alliances and licensing arrangements. To the extent that we raise capital through the sale of
equity or convertible debt securities, the ownership interest of our investors will be diluted, and the terms of these
securities may include liquidation or other preferences that adversely affect the rights of shareholders. Debt financing, if
available, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such
as incurring additional debt, making capital expenditures or declaring dividends. If we raise funds through collaborations,
strategic alliances or licensing arrangements with third parties, we may have to relinquish valuable rights to our
technologies, intellectual property, future revenue streams or product candidates. If we are unable to raise funds through
equity or debt financings when needed, we may be required to delay, limit, reduce or terminate our product development
or future commercialization efforts or grant rights to develop and market product candidates that we would otherwise
prefer to develop and market ourselves.
Our present and future funding requirements will depend on many factors, including, among other things:
•the amount of revenue received from commercial sales of products for which we receive marketing approval.
•the initiation, progress, timing, costs and results of our clinical trials for our product candidates.
•the costs associated with in-licensing or acquiring assets to expand our pipeline, acquiring businesses or assets
to vertically integrate our supply chain and manufacturing and acquiring complementary business.
•the amount of milestones and royalties that we may be required to pay under existing acquisition and licensing
agreements.
•costs associated with expanding our organization.
•the costs involved in filing patent applications and maintaining and enforcing patents or defending against claims
of infringement raised by third parties.
•the time and costs involved in obtaining regulatory approval for our product candidates and any delays we may
encounter as a result of evolving regulatory requirements or adverse results with respect to any of these
product candidates.
