14th Mar 2014 07:50
LONDON (Alliance News) - Venn Life Sciences Holdings PLC Friday said it has raised GBP1 million before expenses by placing 5.3 million shares at 19 pence each, funds it will use to develop the Labskin and potential acne treatment it recently acquired.
The placing is conditional on shareholder approval. The company will seek that approval at a general meeting April 2.
Venn Life Sciences bought skin product Labskin and the intellectual property rights for investigational acne product SYN1113 from Evocutis late last month. LabSkin is a skin substitute that the company claims looks, behaves and feels like human skin and performs a similar barrier function. Critically, it is not tested on animals.
It bought the assets for GBP210,000 in shares plus future royalties on sales of the acquired product.
In its statement Friday, Venn Life Sciences said investments it made in 2013 would impact its results for 2013 given its debt levels, but it expects the benefits of the investments to come through this year.
"During 2013 the company invested significantly in business development and the implementation of systems and infrastructure necessary to ready the business for larger bids," it said. "The board expects to see the benefits of this investment flowing in 2014 and notes in the last three months a significant shift in the scale of business proposals, from single country local business to multi-centred full service studies."
"Venn is now moving from a period of investment, including the retention of underutilised resources in anticipation of new business, to a point of maximum utilisation of available resources and now needs to hire in order to meet increased client requirements," it added.
It said it expects to release its 2013 results on May 16.
By Steve McGrath; [email protected]; @SteveMcGrath1
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