LONDON (Alliance News) - Fastnet Equity PLC on Thursday said it has agreed the reverse takeover of Amryt Pharmaceuticals PLC and will be changing its name following the deal.
Fastnet said it will reverse into Amryt, an orphan drug development company, in a deal worth GBP29.6 million to be covered by the issue of 123.5 million Fastnet shares.
Amryt has recently agreed to acquire German pharmaceutical firm Birken AG and Swiss biopharmaceutical company SomPharmaceuticals.
Birkin has developed a recently-approved drug for partial thickness wounds and has a promising drug on its books for epidermolysis bullosa. SomPharmaceuticals is focused on developing medicines for patients with rare neuroendocrine diseases, including acromegaly and Cushing's disease.
In addition, Fastnet is planning to raise GBP10.0 million in cash via a share placing. It will issue 41.7 million shares at 24.00 pence per share to raise the funding. The company said the 24.00p price is equivalent to 3.00p prior to a planned capital reorganisation, in which 1 new share and 1 deferred share will be issued by each 8 existing shares.
Fastnet shares were up 16% to 3.31p early Thursday.
The funds from the placing will be used by the enlarged company to initiate a phase III clinical trial of Episalvan, Birkin's wound treatment.
Following completion of the deal, Fastnet will change its name to Amryt Pharma PLC, subject to securing shareholder approval for the move at a meeting set for April 18.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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