Imunon Inc. (NASDAQ:IMNN) reported a financing package totaling $10 million on Thursday, a move the company said is intended to support continued enrollment in its pivotal Phase 3 OVATION 3 clinical trial. The announcement came ahead of the market opening and was followed by a 3.3% increase in Imunon shares in premarket trading.
The definitive agreements comprising the financing include an issuance of 250 shares of non-redeemable, non-convertible preferred stock for $2.5 million, alongside two secured promissory notes that together total $7.72 million. The promissory notes carry annual interest rates of 8% and 5% and are scheduled to mature 18 months after issuance.
Company officials said the net proceeds will be directed to support continued enrollment in the OVATION 3 Phase 3 study, which is evaluating IMNN-001 in patients newly diagnosed with advanced ovarian cancer. The company described the financing structure as one that avoids warrants and the pricing discounts commonly associated with traditional equity offerings.
In a prepared statement, Stacy R. Lindborg, President and Chief Executive Officer of Imunon, said the arrangement provides controlled access to capital while aiming to limit dilution for existing shareholders. The transaction is structured to strengthen the company’s balance sheet as it works to complete enrollment in the Phase 3 trial.
Imunon also cited updated Phase 2 clinical data in the announcement. Those results showed the median overall survival for women with newly diagnosed advanced ovarian cancer treated with IMNN-001 in combination with standard-of-care chemotherapy increased to 14.7 months, up from a previously reported 11.1 months. The company further reported that patients who received IMNN-001 plus PARP inhibitors experienced a median increase in overall survival of 24.2 months compared with standard-of-care chemotherapy alone.
The financing combines preferred equity and debt instruments, and the company emphasized that the structure avoids the warrants and discounts often used in traditional equity raises. The secured notes introduce defined repayment terms and interest obligations, while the preferred stock issuance contributes to immediate liquidity for trial operations.
Imunon described the financing as a measure to bolster its balance sheet while the firm seeks to finish enrolling patients in its pivotal Phase 3 study. The company did not provide additional operational details beyond the financing terms, the stated use of proceeds, and the updated Phase 2 survival data included in the announcement.
Context note - The OVATION 3 study focuses on IMNN-001 in newly diagnosed advanced ovarian cancer and the financing is explicitly intended to support continued enrollment in that pivotal trial.