21st Jun 2016 13:50
LONDON (Alliance News) - Revolymer PLC, the AIM-listed specialty chemicals company, on Tuesday said it raised the funds required to support its acquisition of Itaconix Corp, a privately owned polymer company based in New Hampshire, for up to USD13.0 million in cash and shares.
In a statement, Revolymer said that Panmure Gordon, its nominated adviser, broker and bookrunner, placed 10.8 million shares at 37 pence each to raise about GBP4.0 million before expenses. Those shares equate to 19.1% of the company's existing shares. Shares in Revolymer were up 3.7% at 38.90 pence on Tuesday afternoon in London.
The pricing of the placing comes after Revolymer on Monday unveiled the purchase of Itaconix, and also set out plans to transfer its nicotine gum business for equity in a European nicotine gum-focused marketer.
IP2IPO Ltd, part of FTSE 250 investor IP Group PLC, backed the placing by taking 3.5 million shares, taking its total to 9.1 million. IP2IPO and IP Venture Fund will have a combined 16.13% stake in the enlarged Revolymer, excluding a planned additional investment by Woodford Investment Management, which is also backing the placing.
Established in 2014 by Neil Woodford, the prominent fund manager, Woodford Investment Management already owned about 17.0 million shares in Revolymer, and will add another 5.1 million shares in the placing. Together, those shares equate to just under 30% of the enlarged Revolymer.
Woodford has agreed to also invest an additional GBP1.8 million through the issue of a further 4.9 million shares at the same price, and will increase the shareholder's stake to 34.31%. Without a waiver of obligations set out under UK takeover rules, Woodford would be obliged to make an offer for Revolymer as a whole.
Revolymer said it intends to ask independent shareholders to confirm in writing that they would approve a move by the Panel on Takeovers & Mergers to waive that obligation.
By Samuel Agini; [email protected]; @samuelagini
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