Chimeric Therapeutics (ASX:CHM) has announced a successful $6.6 million placement, before costs, to institutional, sophisticated, and professional investors. The capital raising was notably oversubscribed, leading to scaled-back allocations, and received cornerstone support from a US-based family office, signaling strong market confidence in the company’s cell therapy programs. The placement involves issuing approximately 1.65 billion new shares at $0.004 per share, along with an equivalent number of unlisted options. The placement price represents a 50% discount to the last traded price and a 44% discount to the 15-day VWAP.
The proceeds from the placement are earmarked for several key initiatives. A primary focus is advancing the CHM CDH17 CAR-T clinical trial to dose level 2, encouraged by promising early clinical signals and robust patient recruitment. Funds will also support Phase 1B trials of CORE-NK, which have demonstrated encouraging preliminary efficacy in acute myeloid leukemia (AML). A portion of the raised capital will be allocated to general working capital and costs associated with the capital raising itself.
In tandem with the capital raising, Chimeric intends to terminate its Placement Agreement with Lind Global Fund II, LP, initially announced in June 2023. This decision underscores the company’s improved financial position following the successful placement. CEO Dr. Rebecca McQualter highlighted the significance of the investor support, stating that it strengthens Chimeric’s ability to accelerate its programs toward key clinical milestones. The placement includes attaching options. Each option exercised within 5 months of issue will trigger an additional option, creating potential for Chimeric to raise more capital.
