Shares in Imugene Ltd (ASX: IMU) are tumbling on Wednesday after the cancer immunotherapy company returned from a trading halt.
At the time of writing, the Imugene share price is down 19.57% to 18.5 cents. The stock is now down roughly 40% since the start of 2026.
The company requested the halt yesterday while it prepared an update for investors.
Here is what the company revealed.
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Imugene announces $20 million capital raising
According to its announcement, Imugene is planning to raise up to $20 million through a combination of a placement and a share purchase plan (SPP).
The company has already secured firm commitments for a $12 million placement from institutional and sophisticated investors. These investors will subscribe for approximately 66.7 million new shares at 18 cents each.
That price represents a 21.7% discount to the last closing price of 23 cents on 9th March and about a 20.8% discount to the 5-day VWAP.
Imugene will also launch a share purchase plan to raise up to $8 million, allowing eligible shareholders to apply for new shares at the same 18-cent price.
The SPP will allow investors to apply for up to $30,000 worth of shares.
Investors participating in the placement and SPP will also receive free attaching options. These options have an exercise price of 18 cents and expire in April 2027.
Why Imugene is raising fresh capital
Management says the funds will be used to continue advancing its lead cancer therapy program known as azer-cel.
This therapy is an allogeneic CAR-T treatment being developed to treat blood cancers.
The proceeds will support the ongoing Phase 1b clinical trial of azer-cel, including expansion of cohort 2 and the new cohort 3 BTKi combination study.
The funding will also help extend the company's cash runway into the fourth quarter of 2026.
Imugene said the trial program aims to generate additional clinical data that could support future regulatory progress.
Encouraging clinical data emerging
The company has previously reported promising early results from the azer-cel program.
Early phase 1b trial results showed an overall response rate of about 82% in relapsed or refractory diffuse large B cell lymphoma (DLBCL) patients.
The therapy is designed as an off-the-shelf CAR-T treatment that can be manufactured in advance rather than customised for individual patients.
If successful, this approach could offer faster treatment access and lower manufacturing costs compared with traditional CAR-T therapies.
What investors should watch next
Imugene plans to continue enrolling patients in its clinical trials and generate additional data throughout 2026.
The company is also exploring combination strategies involving BTK inhibitors, which could expand the therapy's potential applications.
However, the sizeable discount on the new shares appears to be weighing on the share price today.
