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LONDON (Alliance News) - Alliance Pharma PLC on Tuesday said it raised GBP34.0 million through a share placing to support its acquisition of Nizoral.
The company placed 37.4 million shares at a price of 91 pence each, representing an 11% discount to the intraday share price of 102p.
The stock was trading 0.4% lower in the afternoon at 98.60p per share.
"We are delighted to announce the success of this placing, which included demand from both existing and new institutional investors and reflects strong support for our acquisition of Nizoral in the Asia Pacific region," said Chief Executive Peter Butterfield.
"Nizoral will become the fourth International Star brand in our product portfolio and will add further momentum to our rapidly growing Asia Pacific business," added Butterfield.
In addition to the placing, the company will draw around GBP27.9 million from a GBP35.0 million extension of the its debt facilities.
Earlier on Tuesday, Alliance Pharma agreed to buy the marketing rights to Nizoral - an anti-dandruff shampoo brand - from Janssen Pharmaceutica NV which is part of Johnson & Johnson.
The deal is for a total of GBP60.0 million. It will be valid in the more than 15 countries in Asia-Pacific region including Japan, Thailand, South Korea and China.
"The acquisition, which will boost Alliance's successful and rapidly growing APAC [Asia-Pacific] distributor business, is expected to generate material earnings enhancement in the first full year of ownership," the company said.
