Aquaporin's High-Stakes Bet: DKK 78M Rights Issue to Avert Crisis

KONGENS LYNGBY, Denmark – December 19, 2025 – Innovative water technology firm Aquaporin A/S has announced a critical rights issue to raise up to DKK 78 million, a move designed to secure its short-term survival and fund its strategic pivot towards profitability. The company, known for its Nobel Prize-winning biotech filtration technology, faces a precarious financial position, warning that existing shareholders who do not participate in the offering could see their holdings diluted by a staggering 77%.

In a frank admission of its circumstances, Aquaporin stated that "additional capital is needed from the beginning of 2026." The capital raise is the result of a thorough strategic review initiated in August 2025, aimed at keeping the company afloat while it pursues a path to profitability in the medium term. The offering allows existing shareholders to subscribe for new shares at a price of DKK 1 each, a significant discount intended to encourage participation.

"Following a thorough strategic review process and with the support from our shareholders at the recent extraordinary general meeting, we are launching the Rights Issue aimed at raising up to DKK 78 million to ensure that we are sufficiently capitalized in the coming year," said Niels Heering, Chair of the Board of Directors.

A Dwindling Cash Runway

A look at Aquaporin's recent financial reports reveals the urgency behind the move. The company's cash and cash equivalents have plummeted from DKK 93.1 million in September 2024 to just DKK 8.8 million by September 30, 2025. This sharp decline follows a cash burn of DKK 70 million throughout 2024. Despite a previous rights issue in April 2024 that raised DKK 172.4 million, the capital has been rapidly consumed by operating costs and research and development.

Revenue has also faced headwinds. For the first nine months of 2025, revenue stood at DKK 13.2 million, a sharp decrease from DKK 32.8 million in the same period of 2024. The company has since lowered its full-year revenue guidance for 2025 to between DKK 40-50 million. While cost-cutting measures have helped improve EBITDA losses, the company remains deeply in the red, posting a loss of DKK 14.5 million in the third quarter of 2025 alone.

The press release underscores the gravity of the situation, noting that if the offering raises significantly less than expected, "there will be material uncertainty as to whether the Company can remain going concern." In such a scenario, Aquaporin would be forced to implement material changes to its business plan, further reduce costs, or seek alternative funding sooner than anticipated.

The High Cost for Shareholders

The structure of the rights issue places significant pressure on current investors. For every existing share, shareholders will receive ten pre-emptive rights, with three rights required to purchase one new share. This 10:3 ratio and the low subscription price are designed to make participation attractive, but the penalty for inaction is severe. The potential for a 77% dilution serves as a stark warning that the value of non-participating holdings could be dramatically diminished.

To shore up confidence, Aquaporin has secured advance commitments from major shareholders, including M. Goldschmidt Capital A/S and VP Capital N.V., as well as from its own executive management and board. These commitments total up to DKK 21.6 million, representing nearly 28% of the maximum offering. However, these commitments come with a crucial condition: the offering must raise a minimum of DKK 50 million in gross proceeds. Failure to reach this threshold could cause the guarantees to be adjusted or lapse, placing the entire funding round in jeopardy.

The subscription period for the new shares will run from January 7 to January 20, 2026, with the final results expected to be announced on January 22. The outcome will be a pivotal moment for the company and its investors, determining whether Aquaporin has the necessary capital to execute its ambitious turnaround plan.

A Strategic Pivot to Fuel a Biotech Revolution

Should the funding be successful, the proceeds are earmarked for a clear strategic shift. The capital is intended to finance ongoing operations through 2026 and, more critically, to accelerate the development of its second-generation Aquaporin Inside® technology, dubbed AiG2.

"Aquaporin provides for a purpose-driven, asset light and R&D focused business...making Aquaporin well-positioned to execute on our strategy with the proceeds from the Rights Issue," stated CEO Ulrik Lund Jakobsen. That strategy involves a "refined commercial model, reduction of cost base, and stronger focus on Industrial Reverse Osmosis and Forward Osmosis."

The company is targeting commercialization for AiG2 in 2027-2028. This next-generation technology, for which a patent was filed in late 2024, promises enhanced energy efficiency and performance, particularly for high-value applications in the food & beverage industry and specialized industrial water treatment. The focus on Forward Osmosis (FO) is particularly timely, as the global FO market is projected to expand rapidly, reaching an estimated $9.34 billion by 2033, driven by its superior water recovery rates and lower fouling potential compared to traditional methods.

A Case Study in Green Tech Funding Challenges

Aquaporin's high-stakes capital raise is reflective of broader trends in the water and green technology sectors. While global investment in water tech startups hit a record $1.12 billion in 2024 and continues to show momentum, the path from innovation to commercial scale is fraught with financial peril. Water solutions received only 1-2% of total climate tech investment in 2024, highlighting a significant funding gap.

Companies like Aquaporin, which are engaged in deep-tech research and development, often face long return-on-investment cycles and high initial costs that can deter some investors. While venture capital firms are increasingly active, the scale of investment often pales in comparison to the capital required to disrupt established industries and infrastructure. Aquaporin's struggle to bridge the gap between its groundbreaking technology and sustained profitability illustrates the intense pressure on innovative firms to secure patient capital in a market that is still maturing. The success or failure of this rights issue will not only determine Aquaporin’s future but will also serve as a telling indicator of the investment community's appetite for backing capital-intensive solutions to the world's most pressing environmental challenges.