Immuron to raise $9.6m in rights issue

By Dylan Bushell-Embling
Thursday, 23 January, 2014

Immuron (ASX:IMC) has launched a rights issue, seeking to raise up to $9.66 million to fund an upcoming clinical trial and help repay debt.

The company expects to issue 1.93 billion new shares at an offer price of $0.005 per share. The offer has been fully underwritten by Paterson Securities, while BBY Limited is acting as broker.

Part of the proceeds will be put towards a phase IIb trial of treatment candidate IMM-124E in nonalcoholic steatohepatitis (NASH), due to be conducted as part of the company’s IND application with the US FDA.

The funds will also be used to repay the company’s debt to Paladin Labs. The Canadian pharmaceutical company agreed to lend Immuron up to C$1.5 million ($1.53 million) in the form of a convertible debenture as part of a distribution deal for Travelan, Immuron’s OTC preventative treatment for travellers’ diarrhoea.

Immuron is also raising funds to help widen its distribution reach for Travelan and to fund the development of more products.

“This capital raising is an important milestone for Immuron. It is the first time in a long time that funds have been raised for growth, rather than survival,” CEO Amos Meltzer commented.

“With the protracted turnaround process well and truly bedded own, these funds will ensure that the company’s technology platform can be exploited for a range of products.”

Immuron (ASX:IMC) shares were trading 14.29% higher at $0.007 as of around 1.30 pm on Thursday.