(Alliance News) - Drug consulting firm Open Orphan PLC said Tuesday that its proposed all-share merger with clinical development services provider hVIVO PLC has become unconditional as to acceptances.
Open Orphan said that by Monday it had received valid acceptances for a total of 72.5 million shares, representing 87% of hVIVO's entire issued share capital.
In early December, the two AIM-listed companies had announced agreement on terms for a reverse takeover of hVIVO by Open Orphan in a deal that values hVIVO at GBP13.0 million.
Under the terms of the agreement, hVIVO shareholders will receive 2.47 new Open Orphan shares per hVIVO share. The deal values hVIVO shares at 15.56 pence each, a 34% premium to the clinical development services company's closing price of 11.62p on December 8, the day before the initial announcement.
hVIVO shareholders will own 45% of the enlarged firm, with Open Orphan shareholders having the other 55%.
The merger remains conditional on approval from Open Orphan's shareholders at a general meeting on Monday next week, and clearance from the UK Competition & Markets Authority.
Shares in Dublin-based Open Orphan were down 0.5% at 5.00 pence on Tuesday, giving it a market capitalisation of GBP12.7 million, while London-based hVIVO's shares were 4.2% lower at 11.50p for a GBP9.6 million market cap.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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