Bionomics Limited (ASX:BNO) announced it has entered into a subscription agreement with new investor Apeiron Investment Group Ltd. for private placement of 135,833,000 common shares at a price of AUD 0.04 per share for gross proceeds of AUD 5,433,320 in a recapitalized transaction on June 2, 2020. The company will issue 81,500,000 shares in its first tranche and a further 54,333,000 shares in its second tranche subject to shareholder approval and foreign investment review board. Following completion of the first tranche, investor will be invited to nominate a director to the board of the company. After completion of the first tranche, investor will own 13% stake and after completion of the second tranche, investor will own 19.9% stake in the company. Investor also agrees to underwrite further capital raisings by company within a fifteen-month-period from the extraordinary general meeting of shareholders to be convened, with the effect that company will raise up to AUD 15,000,000 at a minimum issue price of AUD 0.06 per share being subject to foreign investment review board and shareholder approvals. As part of the subscription process with investor, and after completion of the second tranche, an entitlement offer will be launched in favour of eligible shareholders providing the opportunity to purchase in pro rata up to 54,333,000 shares at AUD 0.04 per share. Upon satisfaction of investor underwriting obligations, and subject to the company raising the additional AUD 15,000,000, investor will be granted 150,000,000 warrants. The first tranche is expected to close on June 15, 2020.