On September 13, 2022 Imugene Limited (ASX:IMU), a clinical stage immunooncology company, reported a Placement of A$80 million at $0.20 per share (Press release, Imugene, SEP 13, 2022, https://mcusercontent.com/e38c43331936a9627acb6427c/files/f4997931-b58b-4f28-9ce2-e58e8df72379/IMUGENE_ANNOUNCES_A_80_MILLION_INSTITUTIONAL_PLACEMENT.pdf [SID1234619507]). The Placement is being subscribed by two leading institutional investors with significant healthcare and biotechnology expertise.
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The funds raised under the Placement, in addition to the Company’s existing cash position, will provide an extended runway for Imugene’s deep pipeline of clinical programmes. Partnering and licensing opportunities and R&D rebates have the potential to extend the runway further.
Imugene Founder and Executive Chairman Paul Hopper said: "This capital raising ensures a long runway for the existing programmes while also providing flexibility to add complementary assets should attractive opportunities present. 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 1 Based on 30 June 2022 reported cash position, less offer costs IMUGENE LIMITED ACN 009 179 551 2 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."
About the Placement
Under the terms of the Placement, the Company proposes to issue a total of 400 million New Shares to Placement Subscribers at a price of A$0.20 per share. The issue price represents a discount of 11.1% to the last close on 9 September 2022 (A$0.225), and a discount of 12.0% to the 5-day VWAP up to and including 9 September 2022 (A$0.227). New shares issued under the Placement represent approximately 6.8% of existing ordinary shares on issue.
For every two (2) New Shares subscribed for under the Placement, Imugene intends to issue one (1) free attaching New Option – a total of 200 million New Options offered to Placement Subscribers (Placement Options Offer). The New Options will have an exercise price of A$0.33 and will expire on 31 March 2026 and will be exercisable at any time up to and including the expiry date.
The Placement Options Offer will be set out in a prospectus (Prospectus). The options issued under the Placement will provide a further $66 million in funding, if fully exercised. The Placement is being conducted under Imugene’s existing placement capacity pursuant to ASX
The Company reserves the right to amend the above timetable, at its discretion, including for the purposes of any Australian Securities and Investments Commission (ASIC) and ASX requirements.