Australian Strategic Materials Ltd (ASX:ASM) and Imugene Limited (ASX:IMU, OTC:IUGNF) are major beneficiaries of the recent S&P Dow Jones Indices rebalance announcement of the S&P/ASX 300 index.
Both the companies will be added to the index with effect from the open of trading on September 20, 2021.
S&P indices are one of the most widely followed indices in the world and index funds and other investment vehicles tracking the S&P/ASX 300 index must take positions and buy stock in the companies.
10-fold jump in share price
ASM shares have surged about ten-fold to A$12 currently from about A1.26 in September 2020.
The company’s shares recently hit an all-time high after signing an agreement with a consortium of South Korean investors to subscribe for a 20% equity interest in the Dubbo Project along with offtake from the company's Korean Metals Plant.
Under the agreement, a consortium fund will invest US$250 million in Dubbo Project holding company Australian Strategic Materials (Holdings) Ltd (ASMH) and will include provision for a 10-year offtake agreement for up to 2,800 tonnes per annum of neodymium-iron-boron alloy from the Korean Metals Plant (KMP).
The volumes outlined in the proposed offtake agreement anticipate 100% of the neodymium oxide planned to be produced at the Dubbo Project in NSW being the primary source of feed to the KMP in South Korea post the completion of construction.
“Exciting new phase” in ASM growth
ASM managing director David Woodall said after signing the agreement: “In opening a financing pathway for the Dubbo Project, this agreement heralds an exciting new phase in ASM’s growth and puts us one step closer to executing our ‘mine to metal’ strategy.
“We are delighted our new South Korean partners have recognised the mutual value of the strategic investment opportunity represented by our integrated manufacturing capability that offers a new, cleaner source of critical metals and alloys to a rapidly expanding market.
"Cementing our ties with South Korea’s advanced manufacturing sector represents an incredible opportunity to create value from our Dubbo Project.”
Developing a range of new cancer treatments
Imugene has witnessed a steady increase in its share price as the company continues to develop a range of new treatments that seek to activate the immune system of cancer patients to identify and eradicate tumours.
Last week, the company revealed secondary efficacy endpoint progression-free survival (PFS) data for its HER-Vaxx immunotherapy in HER-2 positive gastric cancer.
To date, 36 patients have been enrolled and 24 have achieved a PFS event in this signal generating study.
Based on these results, Imugene now plans two further company-sponsored phase 2 studies and one investigator-sponsored study with HER-Vaxx in early and late-stage gastric cancer.
A$95 million capital raise
Imugene raised A$5 million in a heavily oversubscribed share purchase plan (SPP) in August 2021, capping off a A$95 million capital raise to fund its clinical pipeline into 2025.
The clinical-stage immune-oncology company will use the funds to support work across its three novel technology platforms and bolster its clinical pipeline with acquisitions and licensing deals.
Capital raising “a game-changer”
Speaking on the capital raise when it was first announced, Imugene founder, executive chairman and bio entrepreneur Paul Hopper said: “A capital raising of this magnitude is a game-changer for Imugene, giving the company a strong runway across each of our highly prospective programmes for the next four years.
“It’s a credit to the groundwork done by Leslie and the rest of the team in recent years. We’ve been able to attract some high quality, specialist shareholders in the life sciences sector, and I’d like to welcome those new shareholders as well as thanking our existing shareholders for their continued support.”