LONDON (Alliance News) - Venn Life Sciences Holdings PLC said Tuesday it entered a strategic collaboration with Open Orphan DAC.
Under the collaboration, both companies will commit to resource sharing and joint marketing to achieve a stronger commercial position in the rare diseases, also known as orphan diseases, market.
Furthermore, the company has issued GBP1.0 million of privately-held loan notes to fund an increased focus of the business into the area of rare diseases.
"Following a review of the available funding options, including consultation with the company's principal shareholder, Venn's board, in collaboration with the principals of Open Orphan, has identified a group of private individuals which, in the board's view, represents the best source of funds for the anticipated increase in working capital relating to this initiative," Venn said.
These individuals have subscribed for a two-year loan note with a principal amount of GBP1.0 million and a 10% coupon. The interest on the notes will be paid biannually.
Venn Life Sciences shares were trading down 9.1% at 2.00 pence each on Tuesday.