Imugene Limited (ASX:IMU) Secures Up to A$46 Million Funding
Fundraising Overview
Imugene Limited (ASX:IMU) has announced a significant fundraising initiative, securing up to A$46 million through the issuance of senior, unsecured, zero-coupon convertible notes and unlisted warrants to CVI Investments Inc. The company will receive A$20 million initially from convertible notes with a five-year maturity and the potential for an additional A$26 million through warrant exercises.
The convertible notes will allow CVI to convert them into ordinary shares at a 25% premium to Imugene’s last closing price on 20 December 2024. Each warrant carries an exercise price of $0.0494.
Funding Allocation and Use
The proceeds from this capital raising will directly support Imugene’s ongoing clinical trial programs, including azer-cel, onCARlytics, and VAXINIA. This funding efforts extend Imugene’s cash runway into late 2025, excluding any additional inflow from potential warrant exercises.
Executive Comments
Leslie Chong, Managing Director and CEO of Imugene, stated, “This funding reinforces our ability to advance Imugene’s range of highly prospective drugs and technologies further through the clinic. Attracting this investment underscores the confidence in our approach and affirms our growth potential.”
Chong highlighted that the funding also helps the company avoid common pitfalls associated with other convertible notes, such as interest and security obligations.
Operational Initiatives
In addition to the funding received, Imugene is implementing various operational improvements. These include optimising workforce levels and reducing administrative expenses, contributing further to extending its financial runway.
The issuance of the convertible notes and warrants is subject to shareholder approval and fulfilling specific conditions precedent.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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