Deal with SynBio funds development; company also to acquire SymbioTec
By Devika Patel
Knoxville, Tenn., Aug. 4 - Lipoxen plc said it will raise £12.19 million in a private placement of shares with investor SynBio LLC.
The company will sell 110.8 million ordinary shares at 11p each. The per-share price is an 18.92% premium to the Aug. 3 closing share price of 9.25p.
SynBio will also receive 11.08 million five-year warrants, which are each exercisable at 33p. The strike price reflects a 256.76% premium to the Aug. 3 closing share price.
Following this, SynBio is expected to hold 50.19% of the company's issued share capital.
Proceeds will be used to initiate development and clinical efforts on three proprietary Lipoxen product candidates: Polysialyiated EPO, Polysialyiated G-CSF and Histone H1.3, develop the company's in-house product development and commercialization capabilities by contracting with manufacturing organizations to conduct the concomitant drug development processes, expand laboratory operations and for the company's working capital requirements.
The company also said it plans to acquire SymbioTec GmbH for £8.8 million, which will be satisfied by issuing 80 million ordinary shares.
London-based Lipoxen develops vaccines and cancer drugs.
| Issuer: | Lipoxen plc
|
| Issue: | Ordinary shares
|
| Amount: | £12,188,000
|
| Shares: | 110.8 million
|
| Price: | 11p
|
| Warrants: | 11.08 million
|
| Warrant expiration: | Five years
|
| Warrant strike price: | 33p
|
| Investor: | SynBio LLC
|
| Pricing date: | Aug. 4
|
| Stock symbol: | London: LPX
|
| Stock price: | 9p at close Aug. 4
|
| Market capitalization: | £16.39 million
|
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