Chimeric Therapeutics (CHM: $0.039) has announced a capital raise for up to $6.3 million, which comprises of a $1.04 million placement to board and management and a $5.25 million SPP.

Chimeric finished the March quarter with just $2.8 million in funds, down from $23.7 million at the same time last year. The challenging funding environment will see Chimeric delay some of its operating activities, as the company seeks to build positive data from its novel CAR T cell platforms.

With a smaller capital raise than expected, funding will continue to be the major risk for the company, as share prices for many early stage drug development companies are depressed and appetite for risk remains low.

Bioshares recommendation: Speculative Hold Class B