ImageneBio has entered into a definitive securities purchase agreement with certain institutional investors in a private placement that is expected to result in gross proceeds of approximately USD 30 million to Imagene, before deducting placement agent fees and other expenses. The company intends to use the proceeds from the offering to support further development of IMG-007 in alopecia areata and late-stage development activities in atopic dermatitis.

“We are thrilled to be joined by this exceptional group of investors who share our conviction about IMG-007 and OX40, as well as our vision for the value of Imagene,” said Kristin Yarema, PhD, Chief Executive Officer, Imagene. “We believe IMG-007, working upstream of other targets in the immune-cascade, is strongly differentiated, with disease-modifying potential. We are pleased with the progress of our Phase 2b ADAPTIVE trial in atopic dermatitis and excited to be moving forward as planned under our amended protocol. The amended protocol is designed to showcase IMG-007’s differentiating features and expand the range of exposures to IMG-007 while continuing to be Phase 3-enabling. This investor support of our strategy also gives us the opportunity to advance our alopecia areata program, an indication where we have already seen promising clinical proof-of-concept with IMG-007 and where there is great unmet need for a biologic with durable efficacy and a strong tolerability profile.”

Pursuant to the terms of the securities purchase agreement, the company is selling pre-funded warrants to purchase up to 5,770,335 shares of common stock at a price of USD 5.199 per pre-funded warrant. The pre-funded warrants will have an exercise price of USD 0.001 per share.

The private placement is being led by a new investor, Coastlands Capital, and includes participation from additional new investors, including Trails Edge Capital Partners and existing investors, including Omega Funds and OrbiMed.

The securities offered in this private placement, including the shares underlying the pre-funded warrants, have not been registered under the Securities Act of 1933, as amended (the Securities Act), or applicable state securities laws, as the transaction was conducted without a public offering. These securities may therefore not be reoffered or resold in the US absent an effective registration statement or an applicable exemption under the Securities Act and applicable state securities laws. In connection with the private placement, investors have been granted customary resale registration rights for the common stock issuable upon exercise of the pre-funded warrants.