Imagion Biosystems announced that it has secured firm commitments for AU$3.75 million, or about US$2.59 million, in new capital following FDA clearance of the company’s IND application for a Phase 2 clinical trial.
The funding will support the start of a clinical trial evaluating Imagion’s MagSense imaging agent in HER2-positive breast cancer. The company has already started trial activation activities and expects to begin patient recruitment later this year.
The capital raise was led by CPS Capital Group through a two-tranche placement. Imagion said investor support exceeded expectations following the FDA clearance milestone.
Tranche 1 will consist of a placement of 49.3 million new shares at AU$0.012 per share, raising approximately AU$592,000 using the company’s existing placement capacity. Tranche 2 will include the balance of shares, representing about AU$3.2 million, subject to shareholder approval at an extraordinary general meeting.
Imagion Biosystems is a clinical-stage imaging company developing MagSense, a molecular MRI imaging platform designed to improve cancer detection. The technology uses targeted magnetic nanoparticles to increase imaging specificity and help clinicians distinguish malignant tumors from benign findings with greater confidence.
Conventional MRI can identify areas of concern based on anatomical or morphological features, but Imagion said it does not provide molecular specificity. MagSense is designed to address that limitation by helping clinicians detect cancer earlier and with greater precision.
The company’s current clinical focus is HER2-positive breast cancer, but the platform has broader potential applications. Imagion has also conducted preclinical studies of imaging agents targeting prostate and ovarian cancers.
KEY QUOTES:
“We are very pleased with the strong demand we saw from investors following our milestone achievement of receiving clearance from the FDA for our MagSense® imaging to proceed with the clinical trial. The successful submission of the IND represents a major technical and organizational accomplishment for the company. With this kind of shareholder support we can continue to advance our MagSense® molecular imaging technology and change how cancer is detected.”
Robert Proulx, Executive Chairman of Imagion Biosystems
