Cancer therapy specialist Prima Biomed is in line for a $15 million injection from a US hedge fund run by renowned healthcare sector investor Wayne Holman.
Prima, whose main therapy targets ovarian and pancreatic cancer, will receive $13.75 million in cash from Ridgeback Capital Investments.
The money will be used, subject to shareholder approval, to issue the hedge fund with convertible notes.
Ridgeback will also buy about $1.25 million worth of ordinary shares in Prima and receive the right to nominate a director to join the Sydney-based biotech's board.
Prima intends to use the money to fund further clinical trials of IMP321, an injectable protein that bolster's the ability of white blood cells to destroy cancer tumours.
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Mr Holman said he looked forward to seeing how the investment by Ridgeback could help Prima develop its anti-cancer therapies.
Prima chairman Lucy Turnbull said Prima also intended to launch a capital raising in the form of a share purchase plan so existing investors could benefit from the growth Ridgeback's support was expected to provide.
Shares in Prima were 0.1 of a cent higher at 2.3 cents at 1414 AEST.
