OSR Health Converts $15M Equity Option to Notes
The company exercised its VXM01 equity option in full and elected to settle through convertible notes rather than cash for common stock.
Updated on Nov. 6, 2026 in Healthcare
OSR Health delivered notice to BCM Europe AG exercising in full its $15 million equity option under the VXM01 global license agreement. The company elected to settle through convertible notes, with closing targeted no later than December 31, 2026.
Why it matters
The exercise is described as an important step toward securing committed, staged funding to improve the company's balance sheet. The notes are expected to be funded in tranches as defined milestones are met.
The $15 million exercise is priced at $10.00 per share under the equity option, and the notes would be issued to a third-party purchaser arranged by BCME. If the note purchase does not close within ten business days after the scheduled closing date, the election will be deemed withdrawn and the equity option reinstated.
The players
OSR Health
OSR Health is the company that exercised the VXM01 equity option and trades on the OTC Pink under the ticker OSRH.
BCM Europe AG
BCM Europe AG is the counterparty that received notice of the equity option exercise under the VXM01 global license agreement.
OSR Holdings Co., Ltd. (OSRK)
OSR Holdings Co., Ltd. is the company whose controlling interest the board authorized management to pursue selling in a reverse takeover with a Nasdaq-listed counterparty.
The details
OSR Health elected to settle the VXM01 equity option through convertible notes instead of a cash purchase of common stock, after the VXM01 global license agreement was amended in October 2026. The company intends to issue up to $15 million in notes to a third-party purchaser arranged by BCME and is in discussions with a Korea-based investor.
Timeline
October 2026: VXM01 global license agreement amended.
November 6, 2026: OSR Health exercised its $15 million VXM01 equity option.
December 31, 2026: Targeted closing date for the convertible note purchase.
End of 2026: Vaximm AG targets publication of the VXM01 clinical data manuscript.
Market Landscape
Settling the VXM01 option through convertible notes rather than common stock reflects a financing structure built around the license agreement's amended terms. Pursuing a reverse takeover of OSRK and an OTCQB quotation signals a parallel effort to reposition the company's listing and control structure.
Shareholders face the possibility of dilution or a changed capital structure if the convertible notes are issued and later converted. Readers tracking the OTC Pink listing should watch for the proposed OTCQB quotation, which remains subject to OTC Markets Group approval.
The takeaway
Investors should track whether the convertible note purchase closes by the targeted date, since failure within ten business days reinstates the equity option. Closing details will indicate whether the company's staged funding plan is proceeding as described.
What happens next
The note purchase is targeted to close no later than December 31, 2026, and Vaximm AG is on track to publish VXM01 clinical data by the end of 2026.
Further reading
Explore more Healthcare coverage for context on biotech licensing and financing deals.
Source note: This article includes information reported by Hawaii Telegraph.
