Imugene (ASX:IMU) received firm commitments to raise AU$22.5 million by issuing about 68.2 million shares to institutional and sophisticated investors at AU$0.33 each, according to a Wednesday filing with the Australian bourse.

The issue price represents an over 22% discount to the closing price on July 11, the filing said.

Participants will receive three free attaching options for every four new shares, the filing added. The options will have an exercise price of AU$0.86 and expire on June 30, 2028.

The company will also raise up to AU$15 million via a share purchase plan, in which eligible shareholders will be able to apply for up to AU$100,000 worth of new fully-paid ordinary shares at the same price as the placement.

Proceeds will be used for research and development, general administration, and working capital, the filing said.

Shares of the company fell nearly 13% in recent Wednesday trade.