Intercytex Group plc, a UK-based emerging healthcare company, today announces its proposed application for admission to trading on AIM, a market of the London Stock Exchange. The Company will raise £15.0 million, conditional on the admission of the new ordinary shares to trading on AIM, through a subscription of approximately £4.2 million by existing shareholders and a placing of approximately £10.8 million with new shareholders. The shares being issued in the subscription and the placing have been priced at 108 pence per share (the “Placing Price”), at which price the Company will have a market capitalisation on admission of approximately £60.2 million. Piper Jaffray Ltd is acting as nominated adviser and sole broker to the Company.
Details of the Subscription and the Placing
An aggregate of 13,888,889 shares will be issued at the Placing Price in connection with the admission to AIM, corresponding to a total fundraising of approximately £15.0 million, approximately £4.2 million of which will be taken up by existing shareholders. No existing shares are being sold as part of the Placing.
Based on the Placing Price and a total number of 55,713,874 shares in issue, the market capitalisation of the Company on completion of the admission and subscription will be approximately £60.2 million.
The Placing generated a broad base of institutional investor interest. Admission will take place in two stages. It is expected that dealings in the existing ordinary shares, the shares issued in the subscription, and the 1,064,814 ordinary shares that are being placed with certain VCTs will commence on AIM at 08:00 on 1 February 2006 (“First Admission”) under the ticker symbol ICX.L. It is expected that dealings in the remaining ordinary shares to be issued will commence on AIM at 08:00 on 2 February 2006 (“Second Admission”).
The Company: Intercytex is an emerging healthcare company developing cell therapy products for the woundcare and aesthetic medicine markets. The Company has proprietary expertise in cell therapy, which is being applied to create products that harness the innate ability of human cells to regenerate and repair the body.
The Company is applying its expertise in this area to develop innovative cell therapy products that address the key weaknesses of the existing, first generation products on the market today, which include cost, ease of manufacture and storage, and ease of use in the hands of clinicians. The Directors believe that there is a significant opportunity for new products that address these key issues.
Intercytex has three products in clinical development, and a fourth product in pre-clinical studies. These products are:
ICX-PRO, the lead product for the treatment of leg ulcers, currently in a multi-centre Phase III trial in the US, UK and Canada, having successfully completed a Phase IIb trial for venous leg ulcers in 2005. The results of the Phase II trial indicated good efficacy and beneficial performance characteristics. The Phase III trial is expected to be completed in the first half of 2007.
ICX-TRC, for hair regeneration in male-pattern baldness, has completed a Phase I safety trial and applications are being prepared to commence a Phase II efficacy trial in mid-2006.
ICX-RHY, for the treatment of wrinkles, is currently in a Phase I trial in the UK and it is expected that a Phase II trial will commence in the UK in mid-2006.
ICX-SKN, in development as a living skin substitute, is expected to commence a Phase I trial in the second half of 2006.
Commenting on the announcement, Nick Higgins, Chief Executive of Intercytex, said: “We are pleased by the demonstration of strong support for the company by both existing and new investors. The woundcare and aesthetic medicine markets are underserved and there is a real need for new products with high levels of efficacy which are simple to manufacture and store, and easy to use. We believe that the products being developed within Intercytex can satisfy these market needs and we plan to use the funds raised in the IPO to develop and commercialise our pipeline products, to create a broad-based, novel woundcare and aesthetic medicine business.”
In connection with the Placing, Piper Jaffray Ltd has been granted an option by the Company to purchase up to an additional 1,500,000 shares at the Placing Price to cover over-allotments, if any, and to cover short positions arising from stabilisation transactions (if any). The over-allotment option will be exercisable for a period of 30 days from First Admission.
Stabilisation/FSA