Immuron completes strategic investment in leading gut health biotech Ateria Health

Highlights:

• Immuron has completed settlement of strategic investment in leading gut health biotech Ateria Health, in accordance with signed subscription and option agreement (announced 13 October 2022):
  • Strategic investment of approximately £1.5m (A$2.6m) to acquire an initial 17.5% of Ateria Health;
  • Option for further investment of £1.47m, expiring on 31 July 2023
• Ateria Health is a U.K. based biotech company that develops and distributes supplements for overall health, including products that strengthen the gut microbiome. Ateria has developed and recently launched a ground-breaking product JUVIA™ for the treatment of irritable bowel syndrome (IBS)
• Intention to enter into reciprocal distribution agreement for Travelan^® in the U.K. market and JUVIA™ in Australian and North American markets

Completion of strategic investment in Ateria Health

MELBOURNE, Australia, Nov. 16, 2022 (GLOBE NEWSWIRE) -- Immuron Limited (ASX: IMC; NASDAQ: IMRN) is pleased to announce that it completed a strategic investment in Ateria Health Limited, a U.K. based company that has developed ground-breaking product for the treatment of irritable bowel syndrome (IBS),

In accordance with a signed subscription and option agreement (announced 13 October 2022), Immuron has completed settlement of upfront cash investment of £1.5m (funded from Immuron’s existing cash reserves), following satisfaction of conditions precedent for the transaction, including completion of Immuron confirmatory due diligence and Ateria shareholder approval.

Immuron has been allotted 800,767 shares in Ateria at £1.85 per share, representing 17.5% of the issued share capital of Ateria post the Company’s upfront cash investment.

As part of the strategic investment Immuron has been offered one Ateria board seat and the Company will nominate a representative director to the Board. Immuron is also entitled to a second representative director upon exercise of the £1.47m share option, expiring on 31 July 2023.

Strategic rationale

The strategic investment advances Immuron’s objective to enter the broader IBS market with leading products and strengthen the distribution of Immuron’s Travelan^® products through B2C online platforms and pharmacy and retail channels (B2B) in target markets.

The strategic investment aligns with Immuron’s growth strategy and complements its existing travel diarrhea products also focused on "gut health" as follows:

• Establishes Immuron’s position in the large and fast-growing IBS market:
  • Ateria Health has developed market leading technology ERME™ for the development of products for the treatment of IBS and other products that improve the gut microbiome
  • Global market for digestive health products is forecast to grow from US $38 billion to $72 billion from 2019-27, at a CAGR of 7.9%¹
• Ateria own ERME™ intellectual property and has commercialised its first product JUVIA^®
• Immuron’s upfront investment and future investment linked to forecast financial performance and board seat
• Complementary reciprocal distribution agreement expected to generate significant synergies and cost savings versus Immuron developing its own direct to the consumer platform and entry into the U.K. and Europe
• Utilise joint R&D capability for the development of future products

Immuron growth strategy and outlook

As Immuron communicated in its FY22 results presentation, the company has committed to a clear organic growth and M&A strategy. This strategic investment into Ateria Health is the first milestone in this journey.

Immuron’s M&A strategy is built on five pillars:

• Expanding market verticals & product offering
• Expanding existing customer base
• Cost & Earnings Synergies
• Strength of IP and Management
• Distribution network and sales & marketing by each product

Please refer to the Company’s ASX announcement dated 13 October 2022 for full details of the strategic investment and key terms.

This release has been authorised by the directors of Immuron Limited.

COMPANY CONTACT:

Steven Lydeamore
Chief Executive Officer
Ph: +61 (0)3 9824 5254
info@immuron.com 

About Immuron
Immuron Limited (ASX: IMC, NASDAQ: IMRN), is an Australian biopharmaceutical company focused on developing and commercializing orally delivered targeted polyclonal antibodies for the treatment of inflammatory mediated and infectious diseases.

For more information visit: http://www.immuron.com

About Ateria Health
Ateria Health Ltd is a UK based health and wellness company with research interests in Australia. Ateria are pioneering a new way forward for the gut microbiome to improve human health. JUVIA™ Digestive Balance Formula is a ground-breaking food supplement activated by our unique ingredient ERME™. Ateria Health scientists discovered that the active digestive enzymes in ERME™ help break down carbohydrates before they can cause problems.

For more information visit: https://ateriahealth.com/ and https://juvia.me/

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¹ https://www.fortunebusinessinsights.com/digestive-health-market-104750