(Alliance News) - Drug consulting firm Open Orphan PLC said Monday it expects to relist on London's AIM market by January 20 following its all-share merger with clinical development services provider hVIVO PLC.
On Monday last week, Open Orphan said the all-share merger with hVIVO had become unconditional as to acceptances, after receiving total valid acceptances for 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 valued 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%.
Arden Partners is acting as broker and nominated adviser.
Shares in Open Orphan - which is headquartered in Dublin - were 12% higher at 5.44 pence on Monday in London. hVIVO shares were up 8.3% at 13.00p.
Also on Monday, Open Orphan announced the signing of a three-year contract with an unnamed German pharmaceutical company.
Under the contract, Open Orphan subsidiary Venn Life Sciences will provide three years of consultancy for pharmacokinetic analysis.
Pharmacokinetics determines the fate of substances administered to the human body, and helps pharmaceutical firms decides on dosage levels and potential adverse effects.
"This new contract is further evidence of Open Orphan delivering against one of its key objectives, transforming Venn by transitioning from ad-hoc short-term contracts to long-term contracts with high quality customers thereby delivering secured recurring revenues for the business," said Chief Executive Cathal Friel.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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