12th Feb 2016 11:50
LONDON (Alliance News) - Shield Therapeutics PLC priced its delayed initial public offering on AIM Friday, raising GBP32.5 million and giving it a market capitalisation GBP162 million on admission.
The company said it placed 21.7 million shares at 150 pence apiece. The company also granted 7 warrants for every 13 shares subscribed in the placing, exercisable at the placing price until June 30, 2017. On full exercise of these warrants, it would raise further proceeds of GBP17.5 million.
The Newcastle-based pharmaceutical company had originally announced plans to list on AIM last September, but postponed its listing just a few days before it was expected to be admitted citing "unfavourable market conditions".
At that time the company had highlighted "sudden levels of uncertainty and volatility" in the pharma and biotechnology sector as its reason for putting off the flotation.
On Friday, Shield Therapeutics said it now expects to be admitted to trading on the junior market February 26.
The company is focused on the development and commercialisation of secondary care-focused pharmaceuticals. Its key products are Feraccru and PT20, for the treatment of iron deficiency anaemia and systemic phosphate accumulation respectively.
Feraccru is expected to receive European marketing authorisation in the first quarter of 2016, and a phased roll-out of commercialisation of Feraccru is expected to begin in the EU during 2016.
PT20 has completed phase II clinical trials, and Shield Therapeutics expects it will need to undergo one further study before it can file a marketing authorisation application for the treatment in major pharmaceutical markets.
The two drugs are currently held by two different companies - Shield Therapeutics and Phosphate Therapeutics Ltd - the second of which is managed by Shield. Shield Therapeutics will acquire Phosphate on admission, with a consideration paid through the issue of new shares in Shield Therapeutics.
"This is an important day in the company's development and in spite of the clearly challenging market conditions I am delighted by the enthusiasm we have received from investors. The funds raised from this IPO will allow Shield to launch Feraccru in key European markets, enabling us to rapidly become a revenue generating specialty pharmaceutical business, as well as enabling expansion of the indications and geographies in which Feraccru can be commercialised," said Chief Executive Officer Carl Sterritt in a statement.
Liberum Capital Ltd is acting as its nominated adviser and broker.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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