Imugene Secures Option Underwriting Agreement with Bell Potter to Raise $5.7 Million


  • Imugene secures an agreement with institutional investors to underwrite the outstanding options not exercised before 30 November 2020.
  • This further bolsters the Company’s financial position and secures the complete $5.7 million options which builds on the current cash balance of $30.1 million as on 30 June 2020.
  • The Company will utilise funds raised from the issue of options towards continuing clinical programs, IP and milestone payments and working capital.
  • Imugene is actively progressing with its four clinical programs, namely HER-Vaxx, PD1-Vaxx, CHECKvacc and VAXinia.

NSW-headquartered clinical stage immuno-oncology firm, Imugene Limited (ASX:IMU) has secured an underwriting agreement with Bell Potter Securities Limited with institutional investors to underwrite the balance of options not exercised by 30 November 2020.

These options provide holders with an option to buy shares in Imugene at a price of $0.026 per share. At present, Imugene has ~217.5 million IMUOA Options, as notified by the Company on 1st September 2020.

Click Here to Read Imugene’s Operational Achievements in FY20

Key Details of Underwriting Agreement

Imugene notified that Bell Potter representing institutional investors will subscribe for the shortfall shares, which are to be issued on exercise of the outstanding options, at the equivalent price as the option exercise price of $0.026.

For underwriting the outstanding listed options, Bell Potter will receive an underwriting fee of 2 per cent of the gross proceeds of the exercise of the Options. Besides, Bell Potter is also entitled to reimbursement of specific expenses.

A number of customary termination events are also highlighted in the underwriting agreement, including but not limited to the following circumstances:

  • If the S&P/ASX 200 Index closes at a level that is 90 per cent or less of the level of that index as at the close of trading on the business day just ahead of the date of the underwriting agreement.
  • If a materially adverse change appears in the financial position, assets, liabilities or operations of Imugene.

Proposed Use of Funds Raised from the Issue of Options

Imugene plans to use the proceeds raised from the issue of options to support its four progressing clinical programs, namely CF33, PD1- Vaxx and HER-Vaxx, provide funding for IP and milestone payments and meet working capital requirements.

The Company is actively progressing with its four clinical programs, comprising:

  • HER-Vaxx Phase 1b/2 Gastric Cancer Study
  • PD1-Vaxx Phase 1 Non-Small Cell Lung Cancer Study
  • CHECKvacc Phase 1 Triple-negative breast cancer (TNBC) Study
  • VAXinia Phase 1 Study in Mixed Advanced Solid Tumours (MAST)

Must Read! Imugene Attains First US Ethics Approval from WIRB to Begin PD1-Vaxx’s Phase I trial

HER-Vaxx Phase 2 study is currently open in Asia & Eastern Europe. While, PD1-Vaxx Phase 1 trial is open in Australia. In 2021, CHECKvacc’s Phase 1 study is proposed to open in the US. While, VAXinia Phase 1 trial is proposed to open in both the USA and Australia.

Imugene believes that the funds raised from the issue of options will further strengthen its existing financial position, building on the current cash reserves of $30.1 million as at 30th June 2020. With a leading team of international cancer experts and robust cash reserves, the Company seems to be well-funded and resourced to deliver on its commercial and clinical milestones.

IMU traded at $0.048 during early trading hours on 10 September 2020.





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