Imugene Targets $37.5M via Placement and SPP at $0.33 per Share

Equity Raising Overview

Imugene Limited (ASX, IMU), a clinical-stage immuno-oncology company, has announced a significant capital raise designed to accelerate its flagship azer-cel program towards a pivotal clinical trial scheduled for calendar year 2026. The company is pursuing a two-pronged equity raising comprising a Placement and a Share Purchase Plan (SPP), collectively targeting up to $37.5 million at an issue price of $0.33 per share. This price represents a discount of approximately 20-22% to recent trading prices, reflecting a strategic move to attract both institutional and retail investors.

The Placement will issue approximately 68.2 million new shares to institutional and sophisticated investors, raising $22.5 million under the company’s existing placement capacity. Concurrently, the SPP offers eligible retail shareholders the opportunity to subscribe for up to 45.5 million new shares, aiming to raise $15 million, with an additional oversubscription facility capped at $15 million. The SPP is subject to shareholder approval at an Extraordinary General Meeting (EGM) expected in August 2025.

Options Incentives and Shareholder Approval

To sweeten the offer, Imugene is attaching options to the new shares issued under both the Placement and SPP. For every four new shares subscribed, investors will receive three attaching options exercisable at $0.43 each, expiring on 30 March 2026. Furthermore, for every attaching option exercised, investors will be granted one piggyback option exercisable at $0.86, with an expiry date of 30 June 2028. Both classes of options are intended to be listed on the ASX, pending shareholder approval.

This layered options structure not only provides potential upside for investors but also aligns capital raising with future milestones, incentivizing participation in the company’s growth trajectory. The issuance of attaching and piggyback options requires shareholder approval at the upcoming EGM, underscoring the importance of investor support for the full execution of the raise.

Use of Proceeds and Financial Position

The proceeds from the equity raising will be primarily directed towards advancing the azer-cel program through to the initiation of a pivotal clinical trial in 2026, with $27.3 million earmarked for research and development activities. The remaining funds will support other R&D initiatives, general administrative expenses, and working capital needs. The company estimates offer costs at approximately $1.5 million.

Imugene’s pro forma cash position post-raise is projected to be nearly $70 million, providing a robust financial runway to support its clinical development plans. The capital injection is expected to increase the total shares on issue from approximately 220 million to 333 million and expand the options pool from around 37 million to 122 million, reflecting the dilution impact of the raise.

Leadership and Market Context

Under the stewardship of Executive Chairman Paul Hopper and CEO Leslie Chong, Imugene continues to build its immuno-oncology pipeline, including programs like onCARlytics and PD1-Vaxx Neo-POLEM Phase II trials. The company faces typical biotech sector risks, including clinical trial uncertainties, regulatory hurdles, and the need for ongoing funding. However, the successful completion of this raise positions Imugene to advance its clinical milestones with greater financial stability.

Joint Lead Managers Bell Potter Securities and E&P Capital are managing the Placement, reflecting confidence in the company’s strategy and market appetite. The raise is not underwritten, indicating Imugene’s reliance on investor demand to fully subscribe the offer.

Next Steps and Investor Considerations

Shareholders and investors should closely monitor the outcome of the EGM in August 2025, which will determine the approval of the SPP shares and the new options. The company’s ability to secure shareholder backing is critical to unlocking the full value of the raise and the associated options incentives. Additionally, market participants will be watching the ASX’s response to the quotation applications for the attaching and piggyback options.

While the raise provides essential funding, investors should remain mindful of the inherent risks in biotechnology development, including clinical trial results, regulatory approvals, and competitive pressures. Imugene’s progress in the coming months will be pivotal in validating the investment thesis underpinning this capital raise.