Imugene Limited

ASX:IMU

Imugene Limited

ASX:IMU
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$0.082 (-3.5%)
Last close price
#109
Rank
23
Held by
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Reports (6) My Report Forum Investors
Forum Topics IMU IMU Capital Raise
rmoss
2 years ago

Executing a cap raise @ 20c (+ unlisted options) is bound to frustrate retail investors after the company has gone to great lengths to reiterate they have enough funding to get through to 2025. There is a throw away line about having the flexibility to add complimentary assets so lets hope there is actually an advanced plan here. I get that having cash in the bank is a good thing but still struggling, any members able to put a positive spin on why now?

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Slew
2 years ago

@rmoss I’ll have a crack a more optimistic take on the IMU cap raise.

Positives

  • Ability to raise cash in this environment, take it while it’s there (CR’s could get harder going forward for unprofitable companies)
  • Options vested at .33, providing the SP improves, there is upside here for current shareholders and an injection of cash in the future.
  • Dilution is not that significant
  • A lack of a SPP reduces, costs, time etc to access funds. While “frustrating” for small shareholders it is much more efficient way to raise capital for the company. (Recent CR’s have been undersubscribed, this is a waste for everyone, eg. PAR)
  • Cash on hand covers expected outflows easily with room to move
  • Shareholders have had the opportunity to buy shares in the recent past around the current Cap Raise price
  • Potentially, there is more behind the move we are unaware of

 

Negative

  • Cap raise at a higher price would have been preferably re dilution
  • Too much cash, could lead to wasteful cap allocation.
  • Net loss doubled last year, if that happens again, they will need the cash.

 

Cynical

  • IMU need to pay for the OTT results presentation, very “glossy” and well produced for a loss-making company, but I guess you have to keep the story alive


Personally, I didn’t feel frustrated by the CR, I am a small shareholder, I’m happy to have the business cashed up, and think there is probably a bit more to this that we will find out in time.


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