Imagion Biosystems variation of convertible securities agreement

Imagion Biosystems Limited (ASX: $IBX) has executed a deed of variation with Mercer Street Global Opportunity Fund, LLC in relation to a convertible securities agreement. The variation involves Mercer waiving all rights of redemption of the convertible notes triggered by the suspension of the company's securities from quotation. In consideration, Imagion Biosystems will issue 3,000,000 shares to Mercer, with 2,350,000 shares to be issued pursuant to its existing placement capacity and the remaining 650,000 shares subject to shareholder approval at the upcoming general meeting on 22 August 2024. Additionally, the company intends to lodge a cleansing prospectus for an offer of up to 1,000 shares at an issue price of $0.07 per share to raise up to $70 before expenses, primarily to remove any trading restrictions on the sale of shares issued by the company prior to the closing date of the prospectus, including the Mercer shares.

Imagion Biosystems executive commentary on variation of convertible securities agreement

The company has successfully executed a deed of variation with Mercer, which demonstrates our commitment to addressing the event of default under the convertible securities agreement. We are pleased that Mercer has agreed to waive the redemption rights, and we believe that the issuance of shares as part of the agreement is a positive step for both parties. The lodging of the cleansing prospectus further aligns with our efforts to ensure trading restrictions are removed, providing greater flexibility for shareholders. We remain focused on advancing our innovative medical imaging technologies and the clinical development of our MagSense platform to revolutionize cancer diagnosis.

Imagion Biosystems variation of convertible securities agreement summary and outlook

Imagion Biosystems (ASX: $IBX) has successfully executed a deed of variation with Mercer, resulting in the waiver of redemption rights in exchange for the issuance of 3,000,000 shares. The company's intention to issue a cleansing offer through a prospectus aligns with its efforts to remove trading restrictions on previously issued shares. This strategic move aims to raise up to $70 before expenses and provides an outlook for increased flexibility in share trading. Imagion Biosystems remains dedicated to developing innovative medical imaging technologies, particularly its MagSense platform, to revolutionize cancer diagnosis. The upcoming general meeting on 22 August 2024 will be crucial for the approval of the remaining 650,000 shares to be issued, further shaping the company's corporate strategy and future prospects.