The Imugene Limited (ASX: IMU) share price has come out of a trading halt today.
This comes after the clinical stage immuno-oncology company provided an update in regards to its latest capital raise.
At the time of writing, Imugene shares are down 4.44% to 21.5 cents apiece.
In comparison, the All Ordinaries Index (ASX: XAO) is up 0.59% following strong gains on Wall Street overnight.
Imugene hails successful placement
In a statement to the ASX, Imugene advised it has successfully completed its $80 million institutional placement.
The company received firm commitments from two leading institutional investors with significant healthcare and biotechnology expertise.
The placement will see a total of 400 million new ordinary shares issued at a price of 20 cents each. This represents an 11.1% discount on the last closing price on 9 September and a 12% discount on the 5-day volume-weighted average price.
In addition, for every two new shares subscribed, Imugene intends to issue one free attaching new option.
A total of 200 million new options will be offered to placement participants with an exercise price of 33 cents per option. This will expire on 31 March 2026 and can be exercisable at any time up to and including the expiry date.
The funds acquired from the placement will boost the company's pro-forma cash position of around $175 million. This will be used to progress the multiple clinical trials that are aimed at treating a variety of cancers.
The shares are expected to be allotted and issued on 19 September 2022.
Commenting on the institutional placements, Imugene founder and executive chair Paul Hopper said:
This capital raising ensures a long runway for the existing programmes while also providing flexibility to add complementary assets should attractive opportunities present.
The ability to introduce two high calibre institutional investors onto the share register following what has been a volatile period across biotechnology indices speaks to the quality of the company's unique clinical platforms.
With minimal dilution to existing shareholders of only 6.8%, and with such a definitive statement of investment support for Imugene by two prominent funds, the board believes we have a significant opportunity to maximise value for all Imugene shareholders.
About the Imugene share price
Since this time last year, the Imugene share price has fallen 46%.
These losses have mostly come from the first few months of 2022.
Based on today's price, Imugene presides a market capitalisation of roughly $1.32 billion with 5.87 billion shares on issue.
