Good questions. I would like answers to them too.
The sellers in this situation are institutions or funds that track the performance of the Australian Stock Exchange 300 Index (ASX300). Examples include Vanguard Australian Shares Index ETF (ASX: VAS) and certain Super Funds. Their positions will be liquidated by cob 24/03/25.
This was ASX: VAS holdings (highlighted in yellow) of IMU as at 28/02/25:
| Vanguard Australian Shares Index ETF |
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| As at 28 Feb 2025 |
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| Holding Name | Ticker | Sector | Country code | % of net assets | Market value (AUD) | # of units |
| Imugene Ltd | IMU | Biotechnology | AU | 0.00895% | $3,630,324 | 98,116,864 |
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| Total allocation percentages shown in the holdings details or the spreadsheet may not equal 100%, due to rounding or omission of cash and/or futures contracts. |
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Buyers would be Index market makers, Funds managers who have been short are taking profits. The Delta 1 trading desk would have worked out that stocks like IMU would be kicked out of the index below x market cap (or x price equivalent). They would have positioned for the index removal + Shorts buying their shorts back. Hence the large volume crossed at the closed. Yep, thanks for coming.
Probably a good thing now that IMU is out of these indices. It's a double edge sword, it's great if you are in these indices as all market cap benchmarks are momentum based. You reward winners and vice versa. Unfortunately, that's not the case with IMU this time around. Maybe IMU 2.0 will be different.
Outstanding Questions??? As many have asked- still the Paul Hopper Collateral Loan and recently Heights Capital Management, an affiliate of Susquehanna International Group, LLP, convertible note.
(20min delay)