Imunon Inc. (NASDAQ:IMNN) traded higher in premarket dealings on Thursday after announcing a $10 million financing package that will support the continued development of its lead ovarian cancer programme.
Shares of the clinical-stage biotechnology company rose 3.3% following the news.
Funding to Support Pivotal OVATION 3 Trial
The newly secured capital will primarily be used to advance enrollment in Imunon’s Phase 3 OVATION 3 clinical study.
The trial is evaluating IMNN-001 in patients newly diagnosed with advanced ovarian cancer and represents a key stage in the company’s development strategy.
Management said the financing strengthens its ability to continue executing the study while progressing toward future clinical milestones.
Financing Structure Includes Preferred Shares and Debt
Under the agreement, Imunon will receive funding through a combination of preferred equity and secured debt.
The transaction includes the issuance of 250 shares of non-redeemable, non-convertible preferred stock for gross proceeds of $2.5 million, alongside two secured promissory notes totaling approximately $7.72 million.
The notes carry annual interest rates of 8% and 5% and are scheduled to mature 18 months after issuance.
Encouraging Survival Data Supports Development
The financing follows the release of updated Phase 2 clinical results for IMNN-001.
According to the company, median overall survival among women with newly diagnosed advanced ovarian cancer treated with IMNN-001 alongside standard chemotherapy increased to 14.7 months, compared with the previously reported improvement of 11.1 months.
Patients who also received PARP inhibitor therapy demonstrated an even stronger outcome, achieving a median overall survival benefit of 24.2 months versus standard chemotherapy alone.
The updated findings have strengthened the scientific rationale behind the ongoing Phase 3 programme.
Designed to Limit Shareholder Dilution
Imunon noted that the financing structure differs from many traditional equity raises because it does not include warrants and avoids the deep discounts often associated with public offerings.
Management believes the approach provides access to capital while helping protect existing shareholders from excessive dilution.
Stacy R. Lindborg, President and Chief Executive Officer of Imunon, said the arrangement gives the company greater control over its funding needs while supporting long-term value creation.
Balance Sheet Strengthened Ahead of Key Milestones
The company said the transaction is intended to reinforce its financial position as it works toward completing patient enrollment in the OVATION 3 trial.
With additional capital now secured, Imunon aims to maintain momentum in its late-stage clinical programme and continue advancing IMNN-001 as a potential treatment option for patients with advanced ovarian cancer.