26th Apr 2016 10:22
LONDON (Alliance News) - Vernalis PLC on Tuesday said it's raising GBP40.0 million by selling new shares to fund a roll-out plan for its Tuzistra XR US prescription cough cold product, the re-introduction of its Moxatag tonsillitis treatment, and planned launches of its remaining four US cough cold programmes under development with Tris.
In a statement, Vernalis said it will issue 80.0 million new shares at 50 pence to raise the money. That will bring its total number of shares trading on the stock exchange to 525.1 million. After expenses, the specialty pharmaceutical company will receive GBP38.9 million. The stock was up 1.3% at 50.62 pence on Tuesday morning.
"We are emerging from the first cough cold season of selling Tuzistra XR with the product gaining commercial traction steadily, despite a mild US cough cold season. With launch data now in hand, we expect the net proceeds of the placing together with our existing cash resources will provide sufficient working capital to support the planned roll-out of the other products in this franchise," Chief Executive Officer Ian Garland said in a statement.
Canaccord Genuity and Shore Capital are acting as joint bookrunners in connection with the placing. Canaccord Genuity is also nominated adviser to the company.
By Samuel Agini; [email protected]; @samuelagini
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