4th Jul 2018 09:58
LONDON (Alliance News) - Gold miner Ovoca Gold PLC said Wednesday it will buy up to 59.9% of Russian female sexual dysfunctions drug proprietor IVIX LLC for a cash consideration of USD6.2 million.
The acquisition is conditional on shareholders' approval. Ovoca shares were trading 10% higher at 11.55 pence each following the news.
The company said that the acquisition represents an "attractive opportunity" for shareholders.
"The enlarged group's goal is to become a leader in the development and commercialisation of novel product candidates for the treatment of female sexual dysfunctions," the company said.
Following the acquisition, if completed, the company will change its name to Ovoca Bio PLC.
The deal, considered a reverse takeover, will be funded from the existing cash on Ovoca's balance sheet.
The company will hold its annual general meeting on July 27.