Imagion raises $3m to advance MagSense cancer diagnosis platform

Imagion raises $3 million to advance its MagSense platform
MagSense is designed to revolutionise cancer diagnosis by introducing molecular imaging to MRI
Strong support for the placement from a broad range of high-quality sophisticated investors

Special Report: Imagion Biosystems has received firm commitments for $3m in a capital raising to advance clinical development of its MagSense platform technology, designed to revolutionise cancer diagnosis by introducing molecular imaging to MRI.

Imagion Biosystems (ASX:IBX) said it would raise $3m in new working capital through the placement of new fully paid ordinary shares and options to sophisticated and professional investors.

IBX will issue 150 million new shares at 2 cents per new share, along with 75 million new options exercisable at 4 cents under the placement to raise gross proceeds of $3 million before costs.

The company said ~9 million new shares and ~4.5 million new options were expected to be issued on October 16 as Tranche 1.

The balance of new shares and new options – Tranche 2 – would be subject to shareholder approval at the company’s upcoming general meeting in November.

Strong support for placement

IBX said it received strong support for the placement from a broad range of high-quality sophisticated investors.

As part of the placement, directors Brett Mitchell and Robert Proulx have agreed to subscribe for an aggregate of 6.25 million new shares and 3.125 million new options, subject to shareholder approval at the general meeting.

The placement was managed by CPS Capital Group Pty Ltd (CPS Capital), the company’s broker and lead manager.

“We are very pleased with the capital raise and saw strong demand from our shareholders,” IBX executive chairman Robert Proulx said.

“I want to thank CPS Capital for all their hard work and all the investors who have shown their support in this process.”

Funds to advance MagSense

IBX said proceeds from the capital raise would be used to advance priority clinical programs of its MagSense platform to achieve key milestones in 2025, while also providing funding for general working capital.

The trademarked platform aims to revolutionise cancer diagnosis by introducing molecular imaging to MRI.

IBX said it was now in the financial position to recommence MagSense platform technology development with a focus on its pipeline programs for prostate, ovarian, pancreatic and brain cancers.

Imagion, Biosystems, ASX, IBX, MagSense, Cancer, Study, MRI — Pic: IBX

Successful Phase 1 breast cancer study

IBX’s Phase 1 study IBI010103 with 13 HER2+ breast cancer patients from four sites in Australia was released in December 2023 and found:

The molecularly targeted MRI contrast agent MSH2IA (MagSense HER2 Imaging agent) was safe and well tolerated in all 13 patients with no adverse events/serious adverse events reported related to the imaging agent
A blinded review by independent expert panel of radiologists has corroborated detectable magnetic signature
There was improvement on ultrasound, which is limited to assessment for abnormal size/shape and could reduce need for sentinel lymph node biopsy (SLNB)/axillary lymph node dissection (ALND)

IBX said plans for an investigational new drug application with the US Food and Drug Administration along with multisite Phase 2 study for HER2+ breast cancer was in progress.

IBX said the health economics of using MagSense mMRI were favourable because it fits within the existing clinical workflow, adds value to the radiologist’s role in patient management and eliminates unnecessary and costly invasive procedures, such as biopsies.

This article was developed in collaboration with Imagion Biosystems, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.