Australian biotech firm Imugene (ASX:IMU) has launched a multi-pronged $20 million capital raising initiative to accelerate its oncological research.
The funding package comprises a $12 million institutional placement and an $8 million share purchase plan for existing eligible shareholders.
Both offerings are priced at $0.18 per share, representing a firm commitment from a diverse group of domestic and international institutional investors.
To ensure stability, the company has secured underwriting for the first $4 million of any SPP shortfall, guaranteeing a minimum total raise of $16 million.
As an incentive for participants, Imugene is offering one free attaching listed option for every new share subscribed.
The options carry an exercise price of $0.18 and are set to expire on April 30, 2027.
If all options are eventually exercised, the company could net an additional $20 million in future funding.
The primary objective of this capital injection is to support the ongoing development of azer-cel, Imugene’s leading clinical candidate.
The funds will finance the expansion of Cohort 2 and the commencement of a new Cohort 3 (BTKi combination) within its Phase 1b clinical trial.
Beyond the equity raise, Imugene is restructuring its debt by redeeming existing convertible notes and entering into a new agreement with CVI Investments Inc. for senior convertible notes and warrants.
At the time of reporting, Imugene's share price was $0.19.