Minster Pharmaceuticals plc (AIM: MPM), the drug development company specialising in neurological and psychiatric disorders, is pleased to announce a fundraising by Nomura Code Securities Limited of approximately £17 million (gross) and the consolidation of the Company’s ordinary share capital.
Highlights:
• Fundraising by way of a Subscription and a Placing of new ordinary shares to raise gross proceeds of approximately £17 million at 65p per share, equivalent to 1.3p per share prior to the proposed share consolidation
• Funds to be used to accelerate the development and commercialisation of tonabersat for the preventive treatment of migraine and to further develop sabcomeline in the treatment of schizophrenia
• Care Capital and Rho Capital (the ‘Consortium’) have conditionally agreed, subject to shareholder approval, to subscribe for 16,923,076 ordinary shares (the ‘Subscription’), representing 28.99 per cent. of the Enlarged Issued Share Capital of the Company
• Dr Jerry Karabelas, a director of Care Capital, to join the Company’s Board as a Non-Executive Director
• In addition to the Subscription, Nomura Code is underwriting a placing of 9,230,770 new Ordinary Shares with new and existing institutional investors at the issue price of 65p per share (the ‘Placing’)
• A Warrant to subscribe for one ordinary share will be issued to subscribers and placees on the basis of one Warrant for every four new shares
• A proposed share consolidation of one new Ordinary Share of 5p each for every fifty Existing Ordinary Shares of 0.1p to improve the potential liquidity by reducing the bid/offer spread in the Existing Ordinary Shares, which the Board believes currently hinders trading
Paul Sharpe, Minster Pharmaceuticals’ Chief Executive, said: ‘I am delighted by the success of this fundraising, which will allow us to accelerate the development of tonabersat in the preventive treatment of migraine, and I am particularly pleased to have won the support and endorsement of two specialist US investors in Care Capital and Rho Capital. I would like to take this opportunity to welcome Jerry Karabelas to Minster’s Board and to welcome all new investors to the Company, which is now entering the most exciting period in its development.’
