Stock Alert: Immuron Jumps 81% On IMM-124E Antiviral Activity Against Coronavirus

(RTTNews) - Shares of Australia-based biopharmaceutical company Immuron Limited (IMRN) are gaining more than 81 percent or $8.49 in Tuesday's morning trade at $18.90.

Tuesday, Immuron said that IMM-124E, which is used to manufacture the company's flagship over-the-counter gastrointestinal and digestive health immune supplements Travelan and Protectyn, demonstrated neutralizing activity against the SARS-CoV-2 virus that causes COVID-19 in laboratory studies.

Separately, Immuron said it has entered into definitive agreements with several healthcare-focused institutional investors for the purchase and sale in a registered direct offering of 1.067 million American Depositary Shares or ADS, each representing 40 of the company's ordinary shares, at a purchase price of $18.75 per ADS. The closing of the offering is expected to occur on or about July 23, 2020.

Immuron expects gross proceeds from the offering to be about $20.0 million. The company intends to use the net proceeds to fund its clinical programs, support marketing initiatives surrounding its flagship product Travelan, and to provide ongoing working capital.

Immuron has traded in a range of $1.55 to $28.99 in the past 52 weeks.