Opthea Settles DFA Agreement, Averts $680M Liability and Announces Management Changes

Opthea Limited has settled a Development Funding Agreement with DFA Investors, averting a potential $680m liability. The company will issue 9.99% of its shares to DFA Investors and retain $20m in cash reserves. Major management changes have been announced, including the resignation of CEO, CFO, and Director. Opthea will continue operations and conduct a strategic review to maximize shareholder value.

Opthea Limited (ASX/NASDAQ: OPT) has successfully reached a settlement with its Development Funding Agreement (DFA) investors, avoiding a potential USD680 million liability. The company will issue 136,661,003 shares (9.99% of its equity) to the investors and retain USD20 million in cash reserves. This settlement follows the failure of the COAST and ShORe phase 3 clinical trials for sozinibercept in wet AMD.

Opthea's executive leadership has undergone significant changes. CEO Dr Fred Guerard, CFO Tom Reilly, and Director Sujal Shah will depart in September 2025. Dr Jeremy Levin will continue as Chairman and assume CEO responsibilities. The company has reduced its workforce by over 80% and its Board by over 50%.

The settlement represents a fundamental reset for Opthea. The remaining USD20 million provides limited runway for the company to conduct a strategic review over the next six months, considering internal development, partnerships, licensing opportunities, or potentially returning capital to shareholders. The settlement's legal protections, including 'springing liens,' demonstrate the precarious nature of the negotiated outcome.

Opthea's stock trading remains suspended by ASX, and the company will host a webcast on August 19 to discuss the settlement and future plans. Dr Jeremy Levin, who will continue as Chairman and assume additional responsibilities, expressed gratitude to the outgoing executive team and the DFA Investors for their collaboration.

References:
1. [https://www.stocktitan.net/news/OPT/opthea-provides-corporate-jomeqwei4c64.html](https://www.stocktitan.net/news/OPT/opthea-provides-corporate-jomeqwei4c64.html)
2. [https://www.reuters.com/sustainability/boards-policy-regulation/australias-opthea-announces-80-headcount-reduction-management-overhaul-2025-08-18/](https://www.reuters.com/sustainability/boards-policy-regulation/australias-opthea-announces-80-headcount-reduction-management-overhaul-2025-08-18/)