Imugene Ltd (ASX:IMU, OTC:IUGNF, FRA:ILA) has launched a capital raising of up to $20 million through a combination of an institutional placement and a share purchase plan (SPP), with funds earmarked to support the continued clinical development of its azer-cel cancer therapy.
The clinical-stage immuno-oncology company has already secured firm commitments for $12 million in a strongly supported two-tranche placement to domestic and international institutional and sophisticated investors.
Under the offer, new shares will be issued at $0.18 each.
Eligible existing shareholders will also be invited to participate in an SPP targeting up to $8 million at the same price. Institutional investors have committed to subscribe for the first $4 million of any shortfall under the SPP, ensuring the company raises at least $16 million across the combined offer.
Participants in both the placement and the SPP will receive one free-attaching listed option for every new share subscribed, exercisable at $0.18 and expiring on April 30, 2027. If all options are exercised, Imugene could receive up to a further $20 million in additional funding.
Funding next phase of azer-cel development
Imugene said proceeds from the raising will primarily support the ongoing development of its azer-cel therapy, particularly the expansion of its ongoing Phase 1b clinical trial.
The company plans to use the funds to:
- Expand Cohort 2 of the Phase 1b trial to generate additional clinical data
- Launch Cohort 3, which will evaluate azer-cel in combination with BTK inhibitors (BTKi)
- Support broader clinical and operational activities across the program
Azer-cel is an allogeneic CAR T-cell therapy being developed to treat blood cancers including lymphoma. The treatment uses engineered donor-derived immune cells designed to recognise and destroy cancer cells.
Imugene has recently reported encouraging early response rates from its clinical program, and the company is seeking to build on that momentum by expanding patient cohorts and testing combination strategies that may enhance therapeutic outcomes.
Managing director and chief executive officer Leslie Chong said the capital raising would help accelerate the next stage of clinical work.
“This capital raising positions Imugene to advance the clinical development of azer-cel, including expansion of our Phase 1b study and the evaluation of BTKi combination strategies,” Chong said.
“We appreciate the strong support from institutional investors as we continue to build momentum in our clinical program.”
Convertible notes amended
Alongside the capital raising, Imugene is also restructuring its existing financing arrangements with CVI Investments Inc.
The company will redeem and cancel its existing convertible notes and enter into a new agreement with CVI for amended and restated senior convertible notes, referred to as SAR notes, along with associated warrants.
Imugene said the changes are intended to simplify its capital structure while aligning the terms of the financing with the company’s broader funding strategy.
Placement structure and timing
The institutional placement will be conducted in two tranches.
The first tranche will be issued under the company’s existing placement capacity, while the second tranche will be subject to shareholder approval at an upcoming general meeting.
Shares issued under the SPP and placement will rank equally with existing fully paid ordinary shares.
The offer price of $0.18 represents the same price for both the placement and the SPP, allowing existing retail shareholders the opportunity to participate on equivalent terms to institutional investors.
If fully subscribed, the combined placement and SPP would raise about $20 million before costs, providing the company with additional resources to advance its pipeline of immunotherapy programs.