18th Feb 2019 09:30
LONDON (Alliance News) - Realm Therapeutics PLC on Monday said it has agreed to sell a number of significant assets for USD10 million to Urgo US Inc and intends to delist from London's AIM market.
Shares in the biopharmaceutical company were up 13% at 8.08 pence on Monday morning.
Realm will sell certain assets comprising its Vashe wound care royalty stream, as well as as an anti-itch gel which was formerly marketed at Aurstat.
Also, included in the sale are Realm's hypochlorous acid related equipment, programme records, intellectual property, and assigned contracts and intellectual property licences.
Once it has disposed of its assets, Realm will become an AIM Rule 15 cash shell. However, Realm is seeking shareholder permission to delist from AIM as soon as the disposal is complete.
Realm does not, however, intend to delist its American depositary shares from Nasdaq and must therefore sign an agreement to combine with another company. If this does not occur within the time frame specified by Nasdaq, Realm will determine a suitable market in which to list its American depository shares.
Realm said it is in discussions with interested parties, including those considering making an offer for the business.
Realm will also adopt a new investing policy which will require directors to invest, partner with, be acquired by, or acquire, "companies with meaningful development potential in the life sciences sector or with good overall business prospects". Should this not occur, Realm will consider a wind-down and distribution of its assets.
As at December 31, Realm had USD18.8 million worth of cash, cash equivalents, and short term investments with the assets disposal to generate USD9.6 million in net cash after transaction costs are deducted.