Immuron rights issue raises $5.33m

Company News

Australian microbiome biopharmaceutical company Immuron (ASX:IMC) has announced the company has received support from its existing shareholders and new investors for the rights issue.

The company announced the rights issue in May, to raise approximately $6 million before costs.

Participants will receive a free-attaching 1:1 New Option exercisable at $0.55 per option expiring 3 years from the date of issue. The issue was 75 per cent subscribed by existing shareholders, raising $4.51 million, with a further $820,000 received from shortfall subscribers.

The company said it received shortfall applications from professional and sophisticated investors for 3,275,468 new shares.

Immuron’s Chairman, Dr Roger Aston, said: “The Board is very pleased at the strong take-up of the Rights Issue by existing shareholders reflecting their confidence and support of the Company’s technology platform together with its future global business strategy. We look to prudently utilise these new funds to further advance the clinical and marketed assets of the Company and continue to grow shareholder value.”

According to CEO Thomas Liquard, the funds raised will support a range of initiatives, including the NASH & ASH trials, increased investment in Travelan/Protectyn marketing and business development initiatives,  pursuit of C-Difficile Phase I and II trials, and repayment of Sea Otter Convertible Note.

Immuron has two Phase II clinical programs in fatty-liver (NASH and ASH) and is planning to commence a Phase I/II clinical trial in C. difficile later this year.

"These programs aim to address the needs of two large markets with significant unmet needs which offer the potential to generate significant upside for our shareholders," said the company.

"These important clinical programs are also balanced by growing OTC revenues from the Company’s existing products Travelan and Protectyn, which offers a unique value proposition in the biotech industry.”