LONDON (Alliance News) - Clinigen Group PLC on Thursday said it placed 9.5 million shares at a price of 845 pence each, raising GBP80 million.
The stock closed 11% lower on Thursday at 830.00p per share.
As part of the placing, Clinigen Chief Executive Shaun Chilton and Independent Non-Executive Director Anne Hyland have agreed to subscribe for 7,101 and 4,142 shares, respectively, at the placing price.
Upon admission, Clinigen will have 132.0 million shares overall. Numis Securities Ltd and RBC Europe Ltd were acting as joint bookrunners in relation to the placing.
Early on Thursday the AIM-listed pharmaceutical company announced a share placing to help pay for the acquisition of packaging & distribution services company CSM Parent Inc for up to USD240 million in cash.
Clinigen also announced the smaller purchase of privately owned Swiss speciality pharmaceutical business iQone Healthcare Holding. For this, Clinigen will pay an initial consideration of EUR7.5 million, split between EUR5.0 million in cash and EUR2.5 million in shares. There also will be an undisclosed deferred consideration based upon iQone's achievement of earnings targets.
The CSM acquisition consideration comprises of an initial consideration of USD150 million and further contingent consideration of USD90 million, both in cash. The deal consideration will be financed by new banking facilities and a GBP80 million equity placing.
Clinigen predicts the CSM Parent deal to result in GBP1 million of costs synergies and earnings per share accretive in first full year of ownership, before synergies.
For the year that ended June 30, Clinigen recorded pretax profit of GBP35.9 million, up from GBP14.1 million in the year ago period, on a revenue of GBP381.2 million and GBP302.3 million, respectively.
For the new 2019 financial year, Clinigen intends to integrate recent product and corporate acquisitions to strengthen its geographical footprint. It has made a good start to the new year and remains well place to drive further growth across all business units.
