Immunotech Biopharm launches HK$296.11m rights issue for pipeline funding

Immunotech Biopharm Ltd. is launching a rights issue offering one Rights Share for every five existing shares held, at a subscription price of HK$2.5 per share. Underwritten on a best-effort basis by Maxa Asset Management Limited, this initiative aims to raise gross proceeds of up to HK$257.29m (assuming no new shares are issued or repurchased) or HK$296.11m (assuming full conversion of Convertible Bonds and exercise of Share Options). The subscription price represents a substantial discount to recent market prices, including approximately 47.70% off the closing price on the Last Trading Day.

The net proceeds, estimated at up to HK$251.88m, will primarily fund early commercialization and clinical trials of EAL® (54% or HK$136.0m), research and development for other pipeline products (24% or HK$60.5m), and general working capital (22% or HK$55.4m) by the end of 2026. The company, facing net current liabilities of RMB455.8m as of June 30, 2025, sees this as a crucial step to improve liquidity and reduce interest burdens.

The nil-paid Rights Shares are expected to trade from Thursday, 16 October 2025 to Thursday, 30 October 2025. Shareholders are advised to exercise caution due to the best-effort underwriting and the possibility of the Rights Issue not proceeding if conditions are not met or the Underwriting Agreement is terminated.