Imugene Ltd (ASX:IMU, OTC:IUGNF), a clinical-stage immuno-oncology company, has successfully completed a $22.5 million institutional placement and launched a $15 million Share Purchase Plan (SPP) for eligible shareholders.
The funds will primarily be used to progress the company’s lead program, azer-cel, through to a pivotal clinical trial in 2026.
Placement, SPP to drive azer-cel program forward
Imugene has secured firm commitments from institutional and sophisticated investors for the placement of 68.2 million new fully paid ordinary shares at $0.33 per share. The placement was oversubscribed, reflecting strong support from both Australian and international investors.
Alongside the placement, the company also announced a Share Purchase Plan (SPP) for existing eligible shareholders, allowing them to participate on the same terms as the placement, to raise up to an additional $15 million.
Both the placement and SPP will include the issuance of free attaching listed options for every four new shares subscribed for. Participants will receive three attaching options for each four shares purchased, which will have an exercise price of $0.43 and an expiration date of March 30, 2026.
In addition, each option exercised before the expiry date will grant one additional free piggyback option, exercisable at $0.86 until June 30, 2028.
The proceeds from this capital raising will primarily fund the development of the azer-cel program, which targets blood cancers through a cutting-edge cell therapy platform. Imugene plans to advance this program towards a pivotal Phase 2 clinical trial, following promising efficacy data released on July 14.
Read more: Imugene's azer-cel shows strong results in Phase 1b trial for DLBCL, set for FDA meeting
Strong financial position for continued growth
Imugene managing director and CEO Leslie Chong noted that the funds raised will extend the company's cash runway into the second half of 2026, with additional funds potentially available through the exercise of attaching options.
"The placement, together with the SPP and our existing cash reserves, places the company in a strong financial position to progress the azer-cel program towards a potential pivotal Phase 2 clinical trial, based on the promising efficacy of data reported earlier this week," Chong said.
Once the raising is complete, Imugene will have a pro-forma cash balance of about $64 million, providing a solid foundation to continue its research and development efforts. With anticipated R&D rebates and other cost-saving initiatives, the company expects to maintain funding into mid-2027, with the potential for up to $36.6 million in additional funding through the exercise of options.
Timetable and shareholder approval
The SPP will be available to eligible shareholders, including those based in Australia and New Zealand, who were listed on the company’s register as of 7:00 PM (Sydney time) on July 15, 2025. Applications for the SPP will be accepted until August 18, 2025.
A shareholder meeting will be held in August 2025 for the approval of the attaching options and the piggyback options.
With its strengthened financial position, Imugene is poised to advance its immuno-oncology pipeline, particularly the azer-cel program, as it seeks to make significant strides in the treatment of blood cancers.