IMU just announced a placement and SPP to raise $60M for licencing a new therapy. Looking for $30M from the placement and $30M from the SPP. SPP is potentially cheaper - 2.5% discount to the VWAP prior. Placement and SPP buyers get a free attaching option for each share, exercise 11.8c and expiry 31 Aug 2026.

The therapy / technology is known as Azer-Cell CD19 CAR T which targets some blood cancers. The claim it can be combined with their existing therapies to target solid cancers which, if true, would be a major synergy of this transaction.

A few thoughts. First, IMU was already well capitalised ($197M at June 30). The amount to raise = the amount they need for this transaction including up-front, deferred payment, trial costs and manufacturing ($60M). This leaves their cash available to advance their existing pipeline.

Second, management seems very excited about this opportunity. I'm not qualified to judge but there are a lot of new cancer therapies in development. For instance, the buzz around AOH1996 has taken some gloss off other cancer therapies and may be behind IMUs falling share price. (I have not assessed if there is overlap here, it's just an example.)

This opportunity is asymmetric. One analyst cut their target price (TP) for IMU before this transaction from 35c to 21c because they were not willing to publish a TP of more than 100% gain. IMU already had a lot of therapies in development and any one could be a company maker, so the TP cap of 100% upside is totally arbitrary. There has been no significant adverse announcement from IMU to justify the fall in price and value.

I see a lot of potential up-side in the options (which reduces the upside from the shares). Better to be a new shareholder than an old one.

Anyone medical strawmen able to comment on the therapeutic claims and opportunities?