26th Apr 2016 16:09
LONDON (Alliance News) - The following is a summary of director dealings reported in London on Tuesday.
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With the financial backing of directors led by Chief Executive Officer Ian Garland and major institutional shareholders Invesco Asset Management and Woodford Investment Management, AIM-listed pharmaceutical company Vernalis said it is raising GBP40 million by selling new shares.
The money will be used to fund a roll-out plan for its Tuzistra XR US prescription cough cold product, the re-introduction of its Moxatag tonsillitis treatment, and planned launches of its remaining four US cough cold programmes under development with Tris.
In a statement, Vernalis said it will issue 80.0 million new shares at 50 pence to raise the money. That will bring its total number of shares trading on the stock exchange to 525.1 million, with the placing shares representing roughly 15% of that figure.
Invesco, which already holds 158.2 million shares in Vernalis, is subscribing for 36.2 million shares. The subscription will see Invesco's voting rights in Vernalis rise to 37.03% from 35.55%.
Although such an acquisition of shares would under stock exchange rules typically force Invesco to make a takeover offer for Vernalis, Woodford and GAM International Management, together in command of 52.52% of voting rights independent of Invesco, consented to the removal of that requirement in relation to the placing.
Woodford, with a holding of 115.5 million shares including voting rights over about 110.0 million, is subscribing for an additional 29.6 million shares.
CEO Garland is subscribing for 100,000 shares, increasing his total holding to 804,857 shares. His total holding will equate to 0.15% of Vernalis shares in issue, down from 0.16% previously.
Chairman Peter Fellner is subscribing for 20,000 shares, which will add to the 250,000 he already had, while Chief Financial Officer David Mackney is buying 50,000 shares to increase his total to 415,203.
Nigel Sheail, a non-executive director, is buying 52,838 shares to take his total to 346,838. Carol Ferguson, another non-executive director, will see her total increase to 156,212 after subscribing for 28,000 shares.
Neither Ian Gilham nor Lisa Schoenberg - two non-executive directors - owns shares in Vernalis. They are not subscribing for any stock in the placing.
According to Vernalis, US prescription cough cold treatments represent a USD3.0 billion market, of which the company expects to gain a "modest share". The company said its cash burn has increased as expected amid continued investment in launching its products in the US.
Vernalis had cash resources of GBP54.0 million and no debt at the end of 2015. The company said it saw a "substantial increase" in its cash burn in the six months ended December 31, being GBP10.6 million during the period, and expects an increased level in the remainder of its financial year ending June 30.
"This first half run rate provides a reasonable guide for anticipated costs in the second half of the 2016 financial year for research and development and general and administration expenses, but first half sales and marketing expenses only had four months of sales force costs included and so the sales and marketing expenses will increase for the second half of the 2016 financial year," Vernalis said.
Shareholders are due to vote on whether the fundraising should go ahead at a meeting scheduled for May 12. Invesco, Woodford and GAM have already voted to approve the move. The trio controls nearly 70% of the existing shares.
The stock closed up 0.3% at 50.12 pence on Tuesday.
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Capita Non-Executive Director John Cresswell bought 1,000 shares at GBP10.0389 each on Tuesday. His total shareholding was undisclosed. The stock closed down 0.7% at 1,003.48p Tuesday.
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Construction and infrastructure company Balfour Beatty said Chief Executive Leo Quinn bought 218,500 shares at a price of 226.8733 pence per share last Friday. Following this transaction, Quinn now holds 381,420 shares, which represents 0.055% stake in Balfour. Quinn joined the company as CEO from defence products company QinetiQ Group at the start of 2015. The stock closed up 2.9% at 236.35p Tuesday.
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Tristel said Chief Executive Officer Paul Swinney bought 5,000 shares at a price of 114.7 pence per share on Tuesday. Following this purchase, Swinney holds 930,000 shares, representing 2.2% of the issued share capital. Shares in the infection prevention and hygiene products maker closed down 2.3% at 113.35p Tuesday.
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Greatland Gold said Non-Executive Director Paul Johnson bought 2.3 million shares at a price of 0.24 pence per share on Monday. Following this transaction, Johnson now holds 56.6 million shares, which represents a 4.75% stake in the base metals exploration and development business. The stock closed up 32% at 0.317p Tuesday.
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Finsbury Growth & Income Trust said Investment Manager Nick Train bought 23,485 shares at 594.8 pence each on Tuesday. He now holds 687,466 shares, or a 0.52% stake in the trust. The stock closed down 0.1% at 592.00p Tuesday.
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Property developer Capital & Regional said Chief Executive Officer Hugh Scott-Barrett acquired 200,000 shares at a purchase price of 65.0 pence per share and sold 150,000 shares at a sale price of 64.0p per share, both on Tuesday. Following the transactions, Scott-Barrett's beneficial holding increased by 50,000 to 2.2 million shares, representing 0.305% of the company's issued share capital. The stock closed up 1.2% at 64.75p Tuesday.
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By Arvind Bhunjun; [email protected]; @ArvindBhunjun
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Related Shares:
Vernalis PLC