Imugene Limited (ASX:IMU) has entered into an agreement to underwrite outstanding listed options which provides holders with an option to purchase shares in the company at 2.6 cents per share.
There are currently 217,462,548 Imugene options (as announced on September 1, 2020) which are due to expire on November 30, 2020.
The agreement further strengthens the company’s financial position building on the existing cash balance of $30.1 million as of June 30, 2020.
Funded to deliver milestones
Funds raised from the issue of options are expected to support the company’s four continuing clinical programs with CF33, PD1- Vaxx and HER-Vaxx as well as provide funding for IP and milestone payments and working capital.
Imugene managing director and CEO Leslie Chong said “We are delighted to have secured this funding commitment.
“With our existing cash reserves this ensures we are well-positioned to deliver on our commercial and clinical milestones”.
Bell Potter underwriting
Bell Potter Securities Limited is acting as underwriter to the options and has agreed to underwrite the balance of the outstanding options of $5.7 million.
Bell Potter will subscribe for the shortfall shares to be issued on exercise of the outstanding options at the same price as the option exercise price of $0.026.
The underwriter will also receive an underwriting fee of 2% of the gross proceeds of the exercise of the options and is also entitled to reimbursement of certain expenses.