Chimeric Therapeutics Ltd (ASX:CHM) has opened a non-renounceable entitlement offer for about 106.5 million fully paid ordinary shares with the intention of raising more than $18 million before costs.
The equity raise will involve an accelerated 1 for 3.15 offer, at $0.17 per share, a 15% discount to the closing price of Chimeric shares on February 18, 2022, representing:
- An 11.8% discount to the theoretical ex-rights price (TERP);
- An 18.3% discount to the 5-day volume weighted average price (VWAP); and
- A 15.0% discount to the last traded price of Chimeric shares.
Details of the offer
Under the entitlement offer, eligible shareholders will be able to subscribe for one new ordinary share in Chimeric for every 3.15 existing shares they possess (held at 7pm (AEDT) on Wednesday, February 23, 2022) with an additional new option offered for every new share, issued with an exercise price of $0.255 and exercisable on or before March 31, 2024.
The entitlement offer is being managed by Bell Potter Securities Limited. Bell Potter will receive fees for its lead manager and other services, to be settled in cash.
Chimeric's board intends to use the proceeds from this entitlement offer to fund payments under the company’s licence and sponsored research agreements as well as Phase I clinical trials.
The entitlement offer includes an institutional component (Institutional Entitlement Offer) and a retail component (Retail Entitlement Offer).
Eligible institutional shareholders were invited to participate in the institutional component of the institutional entitlement offer, which was conducted yesterday, February 21, 2022.
Retail Entitlement Offer
Eligible retail shareholders in Australia and New Zealand will be invited to participate in the Retail Entitlement Offer at the same offer price and offer ratio as the Institutional Entitlement Offer.
The Retail Entitlement Offer will open on February 28, 2022 and close at 5:00pm (Sydney time) on March 11, 2022.
Further details about the Retail Entitlement Offer will be set out in the Retail Entitlement Offer prospectus, which Chimeric expects will be available to eligible retail shareholders on February 28, 2022.
The prospectus will also enclose personalised entitlement and acceptance forms.
About Chimeric Therapeutics
Chimeric Therapeutics is a clinical-stage company with a focus on research related to the usage of cell therapy for the treatment of cancer.
The company is developing CAR T cell therapies for solid tumours based on scientific research conducted by the US CAR T experts at the City of Hope Cancer Centre in Los Angeles.
Chimeric’s CLTX-CAR T technology incorporates chlorotoxin, a peptide derived from scorpion toxin, as a novel CAR tumour recognition domain.