Imagion Issues Over 3 Million Shares to Mercer Street, Reduces Convertible Debt
Imagion Biosystems has completed the conversion of its first tranche convertible notes with Mercer Street, issuing over 3 million shares, while renegotiating terms on the second tranche to extend maturity and reduce debt.
- First tranche convertible notes fully converted and extinguished
- 3,048,484 ordinary shares issued to Mercer Street
- Second tranche notes amended with partial payment and maturity extension
- Remaining second tranche balance to convert into shares if not repaid
- Ongoing investor support reflects confidence in MagSense® technology progress
Completion of First Tranche Conversion
Imagion Biosystems Limited (ASX, IBX), a clinical-stage medical imaging company focused on early cancer detection, has announced the full conversion of its first tranche of convertible notes held by Mercer Street Global Opportunity Fund. On 5 January 2026, Mercer Street exercised its right to convert the remaining 76,212 notes from this tranche, resulting in the issuance of 3,048,484 ordinary shares. This transaction extinguished the $1.65 million debt associated with the first tranche, marking a significant milestone in Imagion's capital restructuring.
Amendment of Second Tranche Terms
In addition to the first tranche conversion, Imagion and Mercer Street have agreed to amend the terms of the second tranche notes, originally issued in June 2023 for $1.1 million. The company will make a $300,000 payment by 8 January 2026, reducing the outstanding balance to $558,000. The maturity date for this remaining balance has been extended to 28 February 2026. Any portion not repaid or converted before this new maturity date will be converted into shares at the pre-agreed conversion price, further impacting Imagion's equity structure.
Investor Confidence and Strategic Implications
Executive Chairman Bob Proulx expressed satisfaction with Mercer Street's continued support, highlighting the investor's confidence in Imagion's progress with its proprietary MagSense® imaging technology. This technology aims to revolutionise cancer diagnosis by enabling earlier and more precise detection through molecular MRI using bio-safe magnetic nanoparticles. The ongoing partnership with Mercer Street underscores the strategic importance of stable financing as Imagion advances its clinical applications.
Looking Ahead
Imagion plans to provide a detailed update on the convertible notes and its financial position in the upcoming December 2025 Quarterly Activities Report, expected by the end of January 2026. Investors will be watching closely for insights into how these capital adjustments affect the company's runway and potential dilution. Meanwhile, the company’s focus remains on delivering clinical milestones that could validate the promise of MagSense® and attract further investment.
Bottom Line?
Imagion’s capital restructuring signals investor confidence but sets the stage for further equity dilution as it pushes forward with cancer detection innovation.
Questions in the middle?
- What impact will the second tranche conversion have on shareholder dilution and control?
- How will the extended maturity and partial repayment affect Imagion’s cash flow and financing needs?
- What clinical progress milestones can investors expect for MagSense® in the near term?
