Imugene embarks on $95 million capital raise to fund clinical pipeline into 2025

Imugene Limited (ASX:IMU, OTC:IUGNF) has embarked on a A$95 million capital raise, establishing a funding runway that will financially support its clinical trial pipeline through 2025. The Australia-headquartered biotech has already received firm commitments to raise A$90 million through a placement executed at 30 cents per share and now hopes to secure a further A$5 million via a share purchase plan (SPP) at the same price. Imugene expects to be well capitalised after the raise, creating a pro-forma funding position totalling a little more than A$200 million. Ultimately, the multi-million-dollar cash injection will support work across the company’s three novel technology platforms and cement its capacity to bolster its clinical pipeline with acquisitions and licensing deals. Imugene's novel technology platforms. Capital raising “a game-changer” 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.” Managing director and CEO Leslie Chong said: “It is incredibly exciting to put Imugene in a position where we are fully funded for the array of outstanding immuno-oncology assets in our portfolio. "The funds from the placement and SPP will allow us to progress these programmes unimpeded and translate the science into shareholder value and ultimately, immunotherapies that help patients in need.” Current progress across Imugene's clinical pipeline. Raising details Under its existing placement capacity, Imugene proposes to issue 300 million shares at 30 cents each on August 4, raising A$90 million. The share price represents a 9.1% discount to the closing price of IMU shares on July 26 and a 10% discount to the five-day volume-weighted average price up to and including that same date. In addition to the shares offer, for every two new shares an investor subscribed for, Imugene will issue one free attaching new option. That means 150 million options will be offered to subscribers, carrying a A$0.45 exercise price and slated to expire just over three years from now. Bell Potter Securities Limited led Imugene’s A$90 million placement. In addition to the placement, Imugene will give eligible investors the chance to subscribe for a portion of 16,666,666 new shares in an SPP. Under the SPP, Imugene will raise up to A$5 million and apply the same options offer outlined in the placement. Both the placement and SPP will open on Wednesday, August 4, and close three weeks later before shares hit the market on Monday, August 23. Funding runway for clinical pipeline Overall, the fresh funding will support Imugene’s three novel technology platforms: the Oncolytic virotherapies, onCARlytics in cellular therapy and B-Cell activating immunotherapies. Specifically, capital will go towards clinical trials for the biotech’s HER-Vaxx, PD-1-Vaxx, CHECKvacc, Vaxinia and OnCARlytics portfolios, as well as the manufacturing, regulatory and working capital costs associated with these candidates. In addition to the capital raised over August, partnering and licensing opportunities, as well as research and development rebates, having the potential to extend the funding runway further. Assuming full subscription, the A$89.3 million raised after costs will bring Imugene’s pro-forma funding position to A$202.3 million. Table outlines how Imugene will use the fresh funding across its clinical portfolio.