31st Jan 2020 12:39
(Alliance News) - Open Orphan PLC on Friday said it has raised GBP5.3 million through a placing and subscription priced at 6.1 pence per share.
Net proceeds from the 71.3 million share placing and 15.6 million share subscription, both priced at 6.1p per share, will go towards a "growth and synergies programme" following Open Orphan's acquisition of hVIVO PLC, a deal that valued clinical development services firm hVIVO at GBP13.0 million.
"The complementary fit, the shared vision and strong shareholder support on both sides of the businesses has allowed Open Orphan to move swiftly to complete the public takeover from the first discussions in November," said Open Orphan, which has its headquarters in Dublin.
The placing was announced Friday morning at 0700 GMT and was intended to raise a minimum of GBP5 million. It was conducted through an accelerated bookbuild process, with Arden Partners PLC acting as nominated advisor and joint broker alongside Davy, with Davy as Open Orphan's Euronext growth advisor.
Executive Chair Cathal Friel subscribed for 4.9 million placing shares, taking the their total number of shares to 46.0 million or an 8.6% stake.
"I am hugely excited by the combination of Open Orphan and hVIVO. We have a fantastic team, substantial revenue potential and the opportunity to grow a profitable business quickly in the year ahead. I am personally participating in the placing as I believe in the strategy of the business and its ability to deliver substantial returns to shareholders in the next 12 months," said Friel.
"We are delighted we have completed the fundraising of over GBP5 million and welcome the new investors to the shareholder register, where our original Open Orphan founders and management team still retain a substantial stake in excess of 20% of the enlarged company because of our original personal investment in the business and which remains locked up for three years post our June 2019 [initial public offering]. The fundraising strengthens the balance sheet to help us realise the full potential of the enlarged group," the chair added.
Shares in Open Orphan were flat at 6.10 pence in London on Friday.
By Anna Farley; [email protected]
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