Invion Targets $16 Million via Loyalty and Piggy-Back Options for Clinical Trials
Invion Limited launches a Loyalty Option entitlement offer aimed at raising up to $16 million to support its advancing cancer clinical trials, including a promising anogenital cancer study with Peter MacCallum Cancer Centre.
- Pro-rata Loyalty Option offer, 77 options per 100 shares at $0.015 each
- Piggy-Back Options granted for early exercise, exercisable at $0.21
- Initial raise target of $1 million, potential total proceeds up to $16 million
- Funds to support Phase I/II trials for non-melanoma skin and anogenital cancers
- ASX waiver secured to exceed standard option limits
Capital Raise Strategy
Invion Limited (ASX – IVX) has announced a strategic Loyalty Option entitlement offer designed to bolster its financial resources for ongoing and upcoming clinical trials. Eligible shareholders will be invited to subscribe for 77 Loyalty Options for every 100 shares held, each priced at 1.5 cents. This pro-rata non-renounceable offer is part of Invion's broader capital management plan to underpin its innovative cancer treatment development.
Incentives and Potential Funding
As an added incentive, shareholders exercising Loyalty Options before the end of 2025 will receive Piggy-Back Options at no additional cost, exercisable at 21 cents. Invion anticipates raising approximately $1 million from the initial offer, with the potential to generate up to $16 million if all options are exercised. This capital injection is critical for advancing Invion’s Photosoft™ technology pipeline.
Clinical Trial Focus
The funds raised will primarily support Invion’s Phase I/II non-melanoma skin cancer trial and an upcoming Phase I/II anogenital cancer trial conducted in partnership with the Peter MacCallum Cancer Centre. The anogenital trial is particularly noteworthy, exploring the safety and efficacy of Invion’s lead drug candidate, INV043, in combination with immune checkpoint inhibitors for rare cancers such as anal, penile, and vulvar cancers. Early in vivo studies have shown promising synergy, with response rates potentially increasing to 80% compared to 12.5% with immune checkpoint inhibitors alone.
Technology and Market Position
Invion’s Photosoft™ technology represents a next-generation photodynamic therapy that selectively targets cancer cells with minimal side effects, offering a less invasive alternative to surgery. The company holds exclusive regional rights across Asia-Pacific and Oceania, positioning it well to capitalize on unmet needs in oncology and infectious diseases. The Loyalty Option offer aligns with Invion’s commitment to advancing these therapies through clinical validation.
Regulatory and Shareholder Considerations
The offer has received a waiver from ASX to allow the company to issue options exceeding the usual limits, reflecting confidence in the strategic importance of this capital raise. Shareholders are encouraged to review the forthcoming prospectus carefully before participating. While the offer presents an opportunity to support Invion’s growth, it also introduces potential dilution, which investors will want to monitor closely.
Bottom Line?
Invion’s Loyalty Option offer sets the stage for a critical funding phase that could accelerate its clinical programs and reshape its market trajectory.
Questions in the middle?
- What will be the shareholder uptake rate for the Loyalty Option offer?
- How will the clinical trial results impact Invion’s valuation and investor sentiment?
- What are the risks of dilution and how might they affect existing shareholders?
