Imagion Biosystems (ASX: IBX) (Company), is pleased to announce the Company has received $3 million of firm commitments through a highly successful capital raising. The funds will provide immediate funding to accelerate its priority work programs and clinical studies on its MagSense® platform technology. The Company’s lead program has demonstrated its innovative technology embodied in MagSense® HER2 Imaging Agent (MSH2IA) is safe and well-tolerated in patients diagnosed with HER2+ breast cancer.
The Company will raise $3m in new working capital through the placement of new fully paid ordinary shares in the capital of the Company (New Shares) and options (New Options) to sophisticated and professional investors (Placement). The Company received strong support for the Placement from a broad range of high-quality sophisticated investors. The Placement was managed by CPS Capital Group Pty Ltd (the Company’s Broker and Lead Manager) (CPS Capital).
The issue price for the Placement of $0.02 per New Share and a 1-for-2 free attaching unlisted New Option, exercisable at $0.04 per New Option expiring three years from the date of issue.
Details of the Placement
The company will issue 150,000,000 New Shares at an issue price of $0.02 per New Share, along with 75,000,000 New Options, exercisable at $0.04, under the Placement to raise gross proceeds of $3 million before costs.
8,911,638 New Shares and 4,455,819 New Options are expected to be issued on Wednesday, 16 October 2024 (Tranche 1) under IBX’s existing placement capacity under ASX Listing Rules 7.1 and 7.1A with the balance of New Shares and New Options subject to shareholder approval (Tranche 2) at the Company’s upcoming general meeting to be held in
November 2024 (General Meeting).
As part of the Placement, Directors Brett Mitchell and Robert Proulx have agreed to subscribe for an aggregate of 6,250,000 New Shares and 3,125,000 New Options, subject to shareholder approval at the General Meeting.
IBX Executive Chairman, Robert Proulx commented, “We are very pleased with the capital raise, we saw strong demand from our shareholders. I want to thank CPS Capital for all their hard work and all the investors who have shown their support in this process”.
Use of Proceeds
Proceeds from the Placement will be used to provide the necessary working capital to immediately advance priority clinical programs of the MagSense® platform technology, which targets to revolutionise cancer diagnosis, together with providing funding for general working capital.
With this key $3m of new funding secured, the Company will look to accelerate its programs to achieve key MagSense® platform technology clinical milestones during 2025. Imagion Biosystems is advancing clinical development of its MagSense® platform technology to revolutionize cancer diagnosis, introducing molecular imaging to MRI.
This new capital raising will allow the Company to recommence the MagSense® platform technology development focused on the Imagion Biosystems’ MagSense® pipeline including prostate cancer, ovarian cancer, pancreatic cancer, and brain cancer programs.
Indicative Timetable
The settlement of the Tranche 1 is expected to occur on Tuesday, 15 October 2024 and allotment and normal trading of New Shares under Tranche 1 will occur on Wednesday, 16 October 2024.
The timetable is indicative only and remains subject to change at the Company’s discretion, subject to compliance with applicable laws and the ASX Listing Rules. The Company reserves the right to change the timetable at any time before New Shares and New Options are issued, subject to regulatory requirements.
All New Shares issued under the Placement will rank equally with existing shares on issue. An Appendix 3B for the proposed issue of securities will follow this announcement.
Authorisation & Additional information
This announcement was authorised by the Board of Imagion Biosystems Limited.
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