Imugene Ltd (ASX:IMU, OTC:IUGNF) has concluded a strongly supported share purchase plan (SPP), raising A$18.2 million to support its acquisition of exclusive licensing rights to Azer-cel, an off-the-shelf CD19CAR T-cell therapy for autologous CART-relapsed patients with blood cancer.
The company is acquiring the rights to develop and commercialise azer-cel from US-based Precision Biosciences, Inc., a move that could usher in potential breakthroughs in cancer therapy.
Under the SPP, the company will issue about 325 million new ordinary shares at A$0.056 per share.
In addition to the shares, eligible shareholders are slated to receive one free option for each new share subscribed.
To test product in clinic
Azer-cel has the potential to be the first CD19-directed allogeneic cell therapy and IMU will test the intended commercial azer-cel product in the clinic, in a potentially 'pivotal' clinical trial.
Imugene recently received positive FDA feedback on its plans to manufacture Azer-cel at a state-of-the-art, 32,800-square-foot Good Manufacturing Practice (GMP) manufacturing facility in North Carolina.
$IMU Imugene enters new frontier with azer-cel CAR T therapy for blood cancers https://t.co/3PXhMspe9K @TeamImugene $IUGNF #IMU #IUGNF #ASX #ASXNews— Proactive Australia (@proactive_au) August 16, 2023
“Portfolio of world-class assets”
Imugene executive chairman Paul Hopper said: “I want to thank our existing shareholders for their support of the SPP on behalf of the board and management of Imugene.
“With a portfolio of world-class assets, backed by an outstanding balance sheet, Imugene is well placed to continue its development and provide shareholder value to our loyal investors in due course.”
SPP summary
Under the SPP, about 325 million shares will be issued at A$0.056 per share, representing the lower of A$0.084 and a 2.5% discount to the 5-day VWAP up to and including the closing date of the SPP - September 21, 2023.
Under the SPP, eligible shareholders will also receive one free option for every new share subscribed for.
The new options will have an exercise price of A$0.118 per option with an expiration of August 31, 2026, and will be subject to shareholder approval.
The new ordinary shares subscribed for under the SPP are expected to be issued on Tuesday, September 26, 2023.
What is the deal?
The deal with Precision involves a US$21 million cash and deferred payment structure, and up to US$198 million performance-based payments over the development life of Azer-cel.
Imugene will also acquire the lease to a state-of-the-art 32,800-square-feet GMP manufacturing facility in North Carolina, drug material for completion of a Phase 1b clinical trial and a highly experienced cell therapy and manufacturing team of about 50 people.
All cash payments will be funded through Imugene’s existing reserves, with the option to make some payments in shares.
Additionally, Imugene will pay US$3 million to Chimeric Therapeutics Ltd (ASX:CHM) as an introduction fee.