Oncimmune Gets Final GBP3 Million Genostics Investment After Deal (ALLISS)

LONDON (Alliance News) - Oncimmune Holdings PLC said Tuesday it has received the final GBP3.0 million tranche of a GBP10.0 million investment from Genostics Co Ltd announced earlier in the year.

As a result, Oncimmune will issue 1.9 million shares to satisfy this final tranche. Admission to trading is expected on Thursday.

In late January, Oncimmune received the initial GBP7 million tranche of the GBP10.0 million equity investment in the company from Genostics. To satisfy the initial tranche, Oncimmune issued 4.5 million shares to Genostics.

In early January, cancer detection technology firm Oncimmune said it had entered a Chinese licensing agreement with Genostics, with the GBP10.0 million equity investment being part of the agreement. Genostics will manufacture, market and distribute Oncimmune's EarlyCDT-Lung testing platform.

Under the deal, Oncimmune will receive a royalty of between 8.0% and 12.5% on the gross revenue subject to minimum royalty payments. Over the first six years following market entry, the minimum royalty will stand at GBP15.7 million on aggregate with a minimum GBP5.0 million index-linked per year thereafter.

At the same time as announcing the licensing deal, Genostics also agreed to invest GBP10.0 million in Oncimmune. This saw Genostics buy 6.4 million shares at 156.0p per share, a 49% premium to the share price prior to the announcement.

Shares in Oncimmune were 2.5% lower at 141.93 pence on Tuesday.

Oncimmune said Genostics will started to sell EarlyCDT-Lung in China within 36 months, assuming Chinese regulatory approval of EarlyCDT-Lung.

In a separate announcement, Oncimmune announced it had appointed Adam Hill as chief medical officer and chief strategy officer from April 9. He has previously served as CMO at other private and listed firms including, most recently, at McLaren Applied Technologies.