Immuron completes strategic investment in leading gut health biotech Ateria Health
November 16 2022 - 7:00AM
Immuron Limited (ASX: IMC; NASDAQ: IMRN) is pleased
to announce that it completed a strategic investment in Ateria
Health Limited, a U.K. based company that has developed
ground-breaking product for the treatment of irritable bowel
syndrome (
IBS),
In accordance with a signed subscription and
option agreement (announced 13 October 2022), Immuron has completed
settlement of upfront cash investment of £1.5m (funded from
Immuron’s existing cash reserves), following satisfaction of
conditions precedent for the transaction, including completion of
Immuron confirmatory due diligence and Ateria shareholder
approval.
Immuron has been allotted 800,767 shares in
Ateria at £1.85 per share, representing 17.5% of the issued share
capital of Ateria post the Company’s upfront cash investment.
As part of the strategic investment Immuron has
been offered one Ateria board seat and the Company will nominate a
representative director to the Board. Immuron is also entitled to a
second representative director upon exercise of the £1.47m share
option, expiring on 31 July 2023.
Strategic rationale
The strategic investment advances Immuron’s
objective to enter the broader IBS market with
leading products and strengthen the distribution of Immuron’s
Travelan® products through B2C online platforms and pharmacy
and retail channels (B2B) in target markets.
The strategic investment aligns with Immuron’s
growth strategy and complements its existing travel diarrhea
products also focused on "gut health" as follows:
- Establishes Immuron’s position in
the large and fast-growing IBS market:
- Ateria Health has developed market
leading technology ERME™ for the development of products for the
treatment of IBS and other products that improve the gut
microbiome
- Global market for digestive health products is forecast to grow
from US $38 billion to $72 billion from 2019-27, at a CAGR of
7.9%1
- Ateria own ERME™ intellectual
property and has commercialised its first product JUVIA®
- Immuron’s upfront investment and
future investment linked to forecast financial performance and
board seat
- Complementary reciprocal
distribution agreement expected to generate significant synergies
and cost savings versus Immuron developing its own direct to the
consumer platform and entry into the U.K. and Europe
- Utilise joint R&D capability
for the development of future products
Immuron growth strategy and
outlook
As Immuron communicated in its FY22 results
presentation, the company has committed to a clear organic growth
and M&A strategy. This strategic investment into Ateria Health
is the first milestone in this journey.
Immuron’s M&A strategy is built on five
pillars:
- Expanding market verticals &
product offering
- Expanding existing customer
base
- Cost & Earnings Synergies
- Strength of IP and Management
- Distribution network and sales
& marketing by each product
Please refer to the Company’s ASX announcement
dated 13 October 2022 for full details of the strategic investment
and key terms.
This release has been authorised by the
directors of Immuron Limited.
COMPANY
CONTACT:
Steven LydeamoreChief Executive
OfficerPh: +61 (0)3 9824 5254info@immuron.com
About ImmuronImmuron Limited
(ASX: IMC, NASDAQ: IMRN), is an Australian biopharmaceutical
company focused on developing and commercializing orally delivered
targeted polyclonal antibodies for the treatment of inflammatory
mediated and infectious diseases.
For more information visit:
http://www.immuron.com
About Ateria HealthAteria
Health Ltd is a UK based health and wellness company with research
interests in Australia. Ateria are pioneering a new way
forward for the gut microbiome to improve human health. JUVIA™
Digestive Balance Formula is a ground-breaking food supplement
activated by our unique ingredient ERME™. Ateria Health scientists
discovered that the active digestive enzymes in ERME™ help
break down carbohydrates before they can cause problems.
For more information visit:
https://ateriahealth.com/ and https://juvia.me/
_________________1
https://www.fortunebusinessinsights.com/digestive-health-market-104750
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