Imugene Ltd (ASX:IMU, OTC:IUGNF) has launched a placement to raise A$80 million and will have a pro-forma cash position of around A$175 million on completion of the placement, which will fund its broad clinical pipeline of three platform technologies.
Notably, the placement participants are two leading institutional investors with significant healthcare and biotechnology expertise.
Imugene will issue 400 million new shares to placement subscribers at a price of A$0.20 per share, representing a discount of 11.1% to the last close on September 9, 2022 (A$0.225), and a discount of 12.0% to the 5-day VWAP up to and including September 9, 2022 (A$0.227).
New shares issued under the placement represent a modest 6.8% of existing ordinary shares on issue.
Use of funds
Imugene is a clinical-stage immuno-oncology company developing a range of new and novel immunotherapies that seek to activate the immune system of cancer patients to treat and eradicate tumours.
The funds raised under the placement, in addition to the company’s existing cash position, will go towards:
- an extended runway for Imugene’s deep pipeline of clinical programs;
- partnering and licensing opportunities; and
- R&D rebates, which have the potential to extend the runway further.
“The ability to introduce two high calibre institutional investors onto the share register following what has been a volatile period across biotechnology indices speaks to the quality of the company’s unique clinical platforms.
“With minimal dilution to existing shareholders of only 6.8%, and with such a definitive statement of investment support for Imugene by two prominent funds, the board believes we have a significant opportunity to maximise value for all Imugene shareholders.”
Imugene managing director and CEO Leslie Chong said: “We are pleased to strengthen the company’s balance sheet and give ourselves an unimpeded runway to progress the numerous clinical trials that we have ongoing.
"By having these multiple shots on goal well-funded gives them the best chance of success, which we expect will translate into shareholder value and improved patient outcomes.”