Why did the Imugene share price have such a lousy end to the week?

A bored man sits at his desk, flat after seeing the latest news on the share market.A bored man sits at his desk, flat after seeing the latest news on the share market.

The Imugene Limited (ASX: IMU) share price finished flat for today, but has been in the red for week.

At Friday’s market close, the clinical stage immuno-oncology company’s shares ended at 22 cents a pop.

This means the share is down 6.38% for the week.

What’s up with Imugene shares?

Investors are drove the Imugene share price to a two-month low on the day of company’s announced institutional placement.

Imugene advised it successfully received firm commitments to raise $80 million from a number of institutional investors.

However, with new Imugene shares to come onto the market, this will dilute the existing shareholder value.

Nonetheless, Imugene released its prospectus to the ASX today for the issue of the institutional placement options.

The offer is an issuance of one new option for every two new shares to eligible participants, to raise up to approximately $66 million.

In total, Imugene will offer 200 million new options at an exercise price of 33 cents per option.

They expire on 31 March 2026 and can be exercisable at any time up to and including the expiry date.

Allotment of the new options under the offer is expected on 19 September.

Imugene is seeking to raise the funds to accelerate the development of its anti-cancer drugs.

Imugene share price snapshot

Adding to this week’s decline, the Imugene share price has tanked almost 50% since this time last year.

Half of these losses have come in the past month alone.

Based on today’s price, Imugene commands a market capitalisation of roughly $1.29 billion, with 5.87 billion shares on issue.

The post Why did the Imugene share price have such a lousy end to the week? appeared first on The Motley Fool Australia.

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More reading

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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