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IMU & ICU – thought?

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IMU & ICU – thought?

Hi James and Team,

Loving the updates please keep up the great work. I just wanted to hear your thoughts on the recent capital raise by IMU and if you see it as a positive for the company moving forward. I am particularly interested in your opinion on the new options being exercisable at $0.45 each on or before August 2024. (General advice only). Finally, ICT and if you see the future outlook and potential takeover of RDH as both positives.

Thanks

Jack R.

Answer

Hi Jack,

  • Biotech stock Imugene (IMU) recently raised $95m at 30c to support development across its clinical portfolio through until 2025. The raise included the 150 million free options you mentioned which are exercisable at 45c in 3-years’ time. I would be surprised if we didn’t see the stock at 45c sometime in the next few years. While I’m not particularly keen on the biotech space broadly given the binary outcomes that play out,  when investing in the space we want huge upside on the ‘ones that work’ and IMU would certainly have huge upside if their cancer treatment met it’s endpoint. Following the capital raise there will be plenty of sellers into strength though as holders trim stock and retain their free options that give plenty of upside if it all works as we hope it will. Personally, I’ve traded IMU, I don’t hold it know, although I know Harry has a few in his bottom draw! I believe the recent raise was very well supported by some large well known institutional shareholders.
  • iCollege (ICU) 12.5c: looks good technically and if we were long the $73m vocational trainer we would stay long and run stops under 10c.
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Imugene Ltd (IMU)
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