4th May 2016 11:50
LONDON (Alliance News) - Ergomed PLC said Wednesday it plans to acquire University of Leicester spin-out company Haemostatix Ltd for an initial GBP8.0 million, to funded by a share placing to raise up to GBP13.0 million.
Haemostatix is developing a pipeline of topical products for surgical bleeding.
Ergomed will raise GBP9.0 million in a placing of 6.4 million shares at a price of 140 pence each. It has also granted the joint bookrunners of the placing, Stifel Nicolaus Europe Ltd and Numis Securitis Ltd, an option to place a further up to 2.88 million shares at the same price, meaning the total to be raised is up to GBP13.0 million.
Shares in Ergomed were down 4.2% at 138.00 pence Wednesday afternoon.
The proceeds of the placing will fund the initial cash consideration and debt repayments as part of the acquisition, as well as to advance Haemostatix's two lead products and provide capital for further bolt on acquisitions of services businesses.
Ergomed said it will pay up to GBP20.0 million of further success and sales based payments for Haemostatix.
"The Haemostatix acquisition provides an opportunity to advance the co-development part of our growth strategy through the development of our first wholly-owned development programme. We have confidence from the current pre-clinical and clinical data that the Haemostatix technology works as an effective haemostat. This, combined with the rapid development and attractive market size, means the acquisition offers great upside potential for Ergomed," said Chief Executive Officer Miroslav Reljanovic in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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