Imugene (ASX:IMU) boosts capital position via AU$80M placement - Kalkine Media

Highlights

• Imugene Limited (ASX:IMU) has announced an institutional placement of AU$80 million at AU$0.20 per share.
• On completion of the Placement, the ASX-listed company will attain a pro-forma cash position of approximately AU$175 million.
• New Shares issued to Placement Subscribers under the placement make up just about 6.8% of the existing ordinary shares.

One of the major clinical-stage immuno-oncology companies, Imugene Limited (ASX:IMU) has received firm commitments for an institutional placement of AU$80 million at AU$0.20 per share. As per the latest release, the Placement has been subscribed to by two prominent institutional investors who hold expertise in healthcare and biotechnology.

Proceeds from the Placement will strengthen Imugene’s current cash position to AU$175 million. It would serve as an extended runway for the company’s rich pipeline of clinical programs and platform technologies. The company believes there is additional potential for further extension of the runway with R&D rebates and new partnering and licensing opportunities.

Key details of the Placement

According to the agreed terms of the Placement, Imugene has proposed to provide 400 million new shares to placement subscribers, representing around 6.8% of the total ordinary shares on issue. The issue price for the new shares has been set at AU$0.20 apiece, which is 11.1% lower than the last close on 9 September 2022 (AU$0.225). The issue price also represents a discount of 12.0% to the 5-day VWAP up to and including 9 September 2022 (AU$0.227).

Under the Placement, Imugene will issue one free attaching New Option at an exercise price of AU$0.33 for every two new shares. This means approximately 200 million New Options will be offered to Placement Subscribers (Placement Options Offer). These options issued under the Placement will expire on 31 March 2026. The Placement participants can exercise these New Options at any time up to and including the expiry date 31 March 2026. If these New Options get fully exercised, they will add around AU$66 million in total capital.

 Image Source: ©2022 Kalkine Media®, Data Source: Company Announcement

Here’s a comment by Imugene Managing Director and CEO Leslie Chong:
“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. 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.”

IMU shares were trading at AU$0.217 at 11:15 AM AEST on 13 September 2022.