19th Jan 2015 08:56
LONDON (Alliance News) - Amphion Innovations PLC saw its shares rise early Monday after it said Motif BioSciences Inc, in which it holds a 32% stake, has agreed to acquire a private company that holds the intellectual property and world-wide rights to a clinical stage antibiotic designed to be effective against MRSA and multi-drug resistant bacteria.
In a statement, Amphion said completion of the acquisition is dependent upon Motif completing an initial public offering before the end of March, and it will update the market on the proposed offering on AIM in due course.
It said Motif had completed a pre-IPO financing of GBP470,000 by issuing convertible promissory notes that will automatically convert into Motif shares when it lists on AIM. If the listing fails to take place, it will repay the notes in cash over nine months.
"The acquisition of this clinical stage antibiotic is a game changer for Motif. As a result of change in the regulatory environment geared to encourage new antibiotics, we believe we have identified the right course for regulatory approval," Amphion Chief Executive Richard Morgan said in a statement.
"Motif's upcoming IPO will fund this exciting plan and we believe will generate and return value to both Motif and Amphion shareholders alike," he added.
Amphion Innovations shares were up 10.5% at 2.90 pence early Monday, making it one of the best-performing stocks on the AIM All-Share index.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
AMP.L