Chimeric Therapeutics Raises $6.6M at Half Market Price to Fund Trials
Chimeric Therapeutics has raised $6.6 million through a discounted two-tranche placement to accelerate its promising CAR-T and NK cell therapy clinical programs. The capital raise, strongly backed by institutional and professional investors, signals growing confidence in the company’s oncology pipeline.
- Placement raises $6.6 million at $0.004 per share with attaching and contingent options
- Funds to advance CHM CDH17 CAR-T dose escalation and CORE-NK Phase 1B trials
- Strong institutional demand led to scaled-back investor allocations
- US-based family office provides cornerstone support
- Termination of prior placement agreement with Lind Global Fund II
Capital Raise Details and Investor Support
Chimeric Therapeutics (ASX:CHM), a clinical-stage cell therapy company focused on cancer treatments, announced a $6.6 million placement to institutional, sophisticated, and professional investors. The placement was conducted in two tranches at a heavily discounted price of $0.004 per share, representing a 50% discount to the last traded price and a 44% discount to the 15-day volume-weighted average price. Despite the discount, the raise was strongly supported, with demand exceeding supply and investor allocations scaled back accordingly. A US-based family office has stepped in as a cornerstone investor, underscoring international confidence in Chimeric’s pipeline.
Use of Proceeds: Advancing Clinical Trials
The funds will primarily support the advancement of Chimeric’s lead programs, including the CHM CDH17 CAR-T therapy and CORE-NK natural killer cell platform. The CHM CDH17 program is progressing to dose level 2 in its phase 1/2 clinical trial targeting gastrointestinal and neuroendocrine tumors, following promising early clinical signals and strong patient recruitment. Meanwhile, the CORE-NK program is advancing Phase 1B trials in acute myeloid leukemia, building on encouraging preliminary efficacy data from earlier studies. The capital will also cover general working capital and costs associated with the capital raising.
Structure and Conditions of the Placement
The placement involves approximately 1.65 billion new shares issued alongside an equal number of attaching options exercisable at $0.004, expiring eight months from issuance. Exercising these options within five months triggers contingent options exercisable at $0.005, potentially enabling Chimeric to raise additional capital. Tranche 1 shares, worth about $0.657 million, will be issued under existing ASX listing rule capacity, with allotment expected on 26 May 2025. Tranche 2, comprising roughly $5.943 million in shares and options, awaits shareholder approval at an extraordinary general meeting anticipated in July 2025.
Strategic Implications and Prior Agreements
With this capital raise, Chimeric intends to terminate its previous placement agreement with Lind Global Fund II, LP, announced in June 2023. This move may streamline the company’s funding arrangements and reduce reliance on prior commitments. Joint lead managers PAC Partners Securities and Taylor Collison Limited will receive adviser options subject to shareholder approval, aligning their interests with the company’s future success.
Outlook and Market Confidence
CEO Dr Rebecca McQualter highlighted the strong investor response as a clear vote of confidence in Chimeric’s cell therapy programs. The capital injection positions the company to accelerate clinical milestones and potentially unlock value for shareholders. However, the significant discount and dilution risk inherent in the placement and options structure warrant close attention as the company progresses. The upcoming shareholder vote on Tranche 2 will be a key event to watch.
Bottom Line?
Chimeric’s successful raise fuels its clinical ambitions but sets the stage for shareholder scrutiny and dilution debates.
Questions in the middle?
- Will shareholder approval for Tranche 2 be secured at the July EGM?
- How will the market react to the dilution from the attaching and contingent options?
- What clinical milestones can investors expect in the next 12 months from CHM CDH17 and CORE-NK?
