Immuron Announces A$5.1M Private Placement to U.S. Fund
Immuron Limited (ASX:IMC; NASDAQ: IMRN) announced today it has finalised a private placement capital raising with a large US institutional investment fund. The terms of the private placement will raise IMC approximately A$5.1 million (before costs of the offer).
The placement will involve the issuance of 13,162,744 new ASX shares at A$0.39 per share, plus three new free-attaching options for every 5 new shares issued resulting in 7,897,647 new options being issued exercisable at A$0.468 per option, expiring five years from the date of issue.
Joseph Gunnar & Co., LLC and H.C. Wainwright & Co. acted as exclusive joint placement agents for the offering, which is expected to complete on March 15, 2018, subject to customary conditions.
IMC expects this capital raise to secure the future funding needs of the company’s other ongoing clinical programs, as well as support ongoing marketing initiatives surrounding the its flagship Travelan product — which has already experienced significant sales growth through the first half of financial year 2018.
CEO Jerry Kanellos commented on today’s news: “Immuron has received a number of recent offers for financial support following the release of the Company’s positive top-line results of its IMM-124E Phase II Non-Alcoholic Steatohepatitis (NASH) clinical study. We’re very pleased that we have been able to partner with this large US institutional investor for this raising and for them to take such a significant position in our Company brings stability and validation to the Company’s share register.”
Of course, it should be noted that Immuron is still a speculative stock and anything can happen. Investors should seek professional financial advice if considering this stock for their portfolio.
This capital raising follows hot on the heels of the company’s major announcement earlier this month that the results were in for its IMM-124E phase II Non-Alcoholic Steatohepatitis (NASH) clinical study.
IMM-124E was shown to result in a statistically significant reduction of serum Lipopolysaccharide (LPS) in patients with NASH. The association between elevated serum LPS and the progression of NASH has been well-documented, and the major news resulted in a significant spike in IMC’s share price as the market took notice.
On the day of the release of results, IMC went from 28 cents to a high of 47 cents:
The past performance of this product is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.
As part of today’s announcement, IMC stipulated it does not intend to register securities or conduct a public offering in the US at this time, stating “This distribution of this press release may be subject to legal or regulatory restrictions in certain jurisdictions” and “Any person who comes into possession of this press release must inform him or herself of and comply with any such restrictions.”
Short-term positions in small, early stage ASX companies,
with high potential and near term price catalysts.
Focusing on resource exploration, early-stage tech, and biotech.
Exceptional opportunities across a broad range of
early-stage growth sectors with strong management.
Seeking 1,000% plus returns across medium to long-term holds.
Longer-term positions in a variety of sectors.
Seeking strong management where traction is established and have entered into a growth phase.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.