Melbourne-based Imugene (ASX: IMU) announced today that it has received firm commitments for a placement of $3 million at an issue price of $0.75 per share from sophisticated investor clients of Forrest Capital.
The company, which is developing HER-2+ gastric and breast cancer immunotherapies, was recently granted a trading halt in advance of the capital raise announcement.
According to the company, the placement comprises the issue of fully-paid ordinary shares and is subject to approval by shareholders at the company’s AGM currently scheduled for on or around 15 October, 2015.
New investors will also receive a one for two (1:2) options for each placement share issued with an exercise price of 1.5 cents per share and expiring on 31 March 2017. The issue of the options is also subject to approval by shareholders at the company’s AGM.
“We are delighted to welcome new and existing shareholders to Imugene in this placement. The funds raised from this placement, subject to shareholder approval, in addition to our existing cash position, places us in a strong position to move ahead with our programme," said Executive Chairman, Paul Hopper.
"With our newly appointed COO, Ms. Leslie Chong, commencing her role shortly and the start of clinical trials, we look forward to an exciting time ahead for Imugene,” he added.
The company said, having significantly addressed establishing GMP quality manufacturing for HER-Vaxx, the next step is to begin clinical trials for HER-Vaxx.
It has appointed a CRO with significant oncology expertise and is targeting late this year or early 2016 to commence the Phase 1b trial.
Funds raised are intended to be applied primarily to initiation of the company’s Phase 1b/2 clinical trial in patients with metastatic gastric cancer and additional preclinical work on HER-Vaxx drug combinations, it said.