2.9m Fundraising
May 29 2009 - 2:00AM
UK Regulatory
TIDMLPX
RNS Number : 9720S
Lipoxen PLC
29 May 2009
+--------------------------------------+--------------------------------------+
| For immediate release | 29 May 2009 |
+--------------------------------------+--------------------------------------+
Lipoxen plc
('Lipoxen' or the 'Company')
GBP2.9 MILLION FUNDRAISING
Led by Baxter International Inc
Lipoxen plc (AIM: LPX), a bio-pharmaceutical company specialising in the
development of high-value differentiated biologicals, vaccines and siRNA
delivery, announces today that it has raised approximately GBP2.9 million before
expenses through a non pre-emptive issue of shares (the 'Fundraising')
consisting of a placing to institutional investors, a subscription by Baxter
International Inc. ('Baxter') and a subscription by senior management and
certain directors of a combined total of 34,200,000 new ordinary shares of 0.5
pence each (the 'Placing Shares'). Noble & Company are acting as lead broker and
Singer Capital Markets are acting as joint broker to the Fundraising.
Highlights of the Fundraising:
* Fundraising led by Baxter International Inc., the global healthcare company
that has an existing license agreement with Lipoxen worth up to a total of US$75
million to develop improved, longer-acting forms of blood-clotting factors - see
separate announcement issued today
* Transaction supported by new institutional investors and certain of Lipoxen's
Directors and senior management
* Proceeds of the Fundraising will be used to fund: - Pre-clinical R&D and
feasibility studies for proprietary and prospective collaborative candidate
development
directed at new licence initiatives; - LPX contribution
to EPO product candidate to EMEA/FDA Phase IIa clinical trials; - IP
protection; - Initiation of new proprietary protein and vaccine programs to
enhance long-term shareholder value creation,
and - Working
capital.
The Placing Shares, which represent approximately 28.5 per cent of the Company's
issued share capital prior to the Fundraising and circa 22.2 per cent of the
enlarged issued share capital, have been placed by Noble & Company and Singer
Capital Markets at a placing price of 8.5 pence per share. The placing price
represents a discount of 39 per cent. to the closing middle market price on the
London Stock Exchange on 27 May 2009.
Under the terms of the Fundraising, Baxter as well as Lipoxen's two largest
shareholders, the Serum Institute of India Ltd and FDS Pharma LLP, have entered
into orderly marketing agreements in respect of all their respective
shareholdings in the Company. The orderly marketing agreements provide that any
sale of their shares in Lipoxen must be done through Noble & Company for a
period of 12 months from the date of admission of the Placing Shares.
Commenting on the Placing, M. Scott Maguire, CEO of Lipoxen, said: "We are very
pleased with the support shown in this Fundraising from both our partner,
Baxter, and leading UK and European institutional investors. We believe that,
together with the recent positive announcements surrounding our influenza and
malaria initiatives, this funding round demonstrates that Lipoxen has a valuable
pipeline, a low risk partnered business strategy and is well positioned for
future growth and generation of shareholder value."
Following the Fundraising, Lipoxen will have a total of 154,058,085 ordinary
shares with voting rights in issue. Therefore the total number of voting rights
in the Company is 154,058,085. This number can be used by shareholders as the
denominator for the calculations which will determine if they are required to
notify their interest in, or a change to their interest in, the Company under
the FSA's Disclosure and Transparency Rules. Admission of these Placing Shares
is expected to become effective on 29 May 2009. The Placing Shares, when issued
and fully paid, will rank pari passu in all respects with the existing ordinary
shares of the Company.
- Ends -
For further information please contact:
+-----------------------------------------------------+--------------------+
| Lipoxen plc | +44 (0)20 7389 |
| | 5015 |
+-----------------------------------------------------+--------------------+
| M. Scott Maguire, Chief Executive Officer | |
+-----------------------------------------------------+--------------------+
| | |
+-----------------------------------------------------+--------------------+
| Singer Capital Markets (nominated adviser) | +44 (0)20 3205 |
| | 7500 |
+-----------------------------------------------------+--------------------+
| Jeff Keating / Claes Spång | |
+-----------------------------------------------------+--------------------+
| | |
+-----------------------------------------------------+--------------------+
| Noble & Company | +44 (0) 20 7763 |
| | 2200 |
+-----------------------------------------------------+--------------------+
| John Llewellyn-Lloyd / Sam Reynolds | |
+-----------------------------------------------------+--------------------+
| | |
+-----------------------------------------------------+--------------------+
| Buchanan Communications | +44 (0)20 7466 |
| | 5000 |
+-----------------------------------------------------+--------------------+
| Mary-Jane Elliott, Lisa Baderoon, Rebecca Dietrich, | |
| Catherine Breen | |
+-----------------------------------------------------+--------------------+
Notes for Editors
About Lipoxen
Lipoxen plc is a biopharmaceutical company focused on the development of new and
improved biologic drugs and vaccines. Lipoxen has three proprietary patented
technology platforms:
1. PolyXen - for extending the efficacy and half life of biologic drugs
2. ImuXen - for creating new vaccines and improving existing vaccines
3. SiRNAblate - for the delivery of siRNA
Lipoxen's technology is designed to improve the efficacy, safety, stability,
biological half-life and immunologic characteristics of its products.
Lipoxen has multiple drug and vaccine programmes in development. Two products
are in clinical development, SuliXen, a long acting insulin and ErepoXen, a
long-acting erythropoietin (EPO). Lipoxen's preclinical pipeline includes Factor
XIII and vaccines against HIV, influenza and malaria.
The Company has a low-risk business model and out-licenses its proprietary
technologies to biopharmaceutical companies that have strong manufacturing and
marketing capabilities. Lipoxen currently has commercial agreements with some of
the world's leading biotechnology and pharmaceutical companies including Baxter,
Schering-Plough, Sanofi-Aventis, the Serum Institute of India Limited,
Genentech, Amgen and Genzyme.
Lipoxen, which was founded in 1997, now trades on the AIM Market of the London
Stock Exchange under the ticker symbol LPX. More information can be found at the
Company's website: www.lipoxen.com.
This announcement includes 'forward-looking statements' which include all
statements other than statements of historical facts, including, without
limitation, those regarding the Company's financial position, business strategy,
plans and objectives of management for future operations (including development
plans and objectives relating to the Company's products and services), and any
statements preceded by, followed by or that include forward-looking terminology
such as the words 'targets', 'believes', 'estimates', 'expects', 'aims',
'intends', 'will', 'can', 'may', 'anticipates', 'would', 'should', 'could' or
similar expressions or the negative thereof. Such forward-looking statements
involve known and unknown risks, uncertainties and other important factors
beyond the Company's control that could cause the actual results, performance or
achievements of the Company to be materially different from future results,
performance or achievements expressed or implied by such forward-looking
statements. Such forward-looking statements are based on numerous assumptions
regarding the Company's present and future business strategies and the
environment in which the Company will operate in the future. Among the important
factors that could cause the Company's actual results, performance or
achievements to differ materially from those in forward-looking statements
include those relating to The Company's funding requirements, regulatory
approvals, clinical trials, reliance on third parties, intellectual property,
key personnel and other factors. These forward-looking statements speak only as
at the date of this announcement. The Company expressly disclaims any obligation
or undertaking to disseminate any updates or revisions to any forward-looking
statements contained in this announcement to reflect any change in the Company's
expectations with regard thereto or any change in events, conditions or
circumstances on which any such statements are based. As a result of these
factors, readers are cautioned not to rely on any forward-looking statement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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