First Day of Dealings on AIM

RNS Number : 6497A

Arecor Therapeutics PLC

03 June 2021

 

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY IN, OR INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL.

Arecor Therapeutics plc

("Arecor", the "Company" or the "Group")

First Day of Dealings on AIM

Cambridge, UK., 3 June 2021: Arecor Therapeutics plc, a globally focused biopharmaceutical company that is targeting improving patient care by bringing innovative medicines to market through the enhancement of existing therapeutic products, is pleased to announce the admission of its Ordinary Shares to trading on AIM, a market operated by London Stock Exchange plc ("Admission").  

Admission follows a successful oversubscribed placing by Panmure Gordon (UK) Limited ("Panmure Gordon"), raising gross proceeds of £20.0 million at a price of 226 pence per share. On Admission the Company will have a market capitalisation of approximately £62.5 million.

Trading of shares will begin at 8.00 am today under the ticker symbol "AREC" and the ISIN number GB00BMWLM973.

Sarah Howell, Chief Executive Officer of Arecor, said: "Today represents an important milestone for Arecor and we are very pleased to be listing on AIM.  This IPO will allow us to continue to grow the business through the development of our own proprietary diabetes and specialty hospital products whilst creating further value through our technology licensing partnerships. We were delighted by the support and interest we received during this transaction which is testament to the potential of our innovative proprietary formulation technology platform, Arestat™. I would like to take this opportunity to thank our new and existing shareholders for their support and we are looking forward to embarking on this next exciting chapter in the Company's development."

Placing Statistics

Placing Price	226 pence
Number of Placing Shares to be issued by the Company pursuant to the Placing	8,849,558
Number of EIS/VCT Placing Shares to be issued by the Company pursuant to the EIS/VCT Placing	3,716,814
Number of General Placing Shares to be issued by the Company pursuant to the General Placing	5,132,744
Number of Ordinary Shares in issue following Admission	27,683,532
Percentage of Enlarged Share Capital represented by Placing Shares	31.97%
Gross proceeds of the Placing receivable by the Group	£20.0 million
Estimated net proceeds of the Placing receivable by the Group	£18.26 million
Estimated market capitalisation, upon Admission, of the Group at the Placing Price	£62.5 million

Unless otherwise stated, the capitalised terms used in this announcement have the same meanings as in the Admission Document. Copies of the Admission Document are available on the Company's website at www.arecor.com

For more information, please contact:

Arecor Therapeutics plc
Dr Sarah Howell, Chief Executive Officer	Tel: [phone] Email: [e-mail]
Susan Lowther, Chief Financial Officer	Tel: [phone] Email: [e-mail]
Mo Noonan, Communications	Tel: [phone] Email: [e-mail]
Consilium Strategic Communications
Chris Gardner, David Daley, Angela Gray	Tel: [phone] Email: [e-mail]
Panmure Gordon (UK) Limited (NOMAD and Broker)	Tel: [phone]
Freddy Crossley, Emma Earl (Corporate Finance)
Rupert Dearden (Corporate Broking)

Company Highlights

· A revenue generating biopharmaceutical company that is targeting improving patient care by bringing innovative medicines to market through the enhancement of existing therapeutic products using its innovative proprietary formulation technology platform, Arestat™.

· Existing and near-term revenue potential: Arecor's strategy is to develop novel formulations of biopharmaceutical products with enhanced properties and to partner with major pharmaceutical and biotechnology companies under a revenue generating licence model with the potential to receive royalties and significant milestone payments. Arecor currently has a total of four active licensing agreements in place with partners that include Hikma and Inhibrx.

· Broad portfolio with significant addressable markets: Arecor's initial therapeutic focus is diabetes, with three insulin-based products in development. In addition, Arecor has a portfolio of different Ready-to-Use ("RTU") and Ready-to-Administer ("RTA") hospital specialty products in development.

· Reduced development risk and timelines: By developing novel formulations of existing, approved therapeutic products, the Directors' believe that the majority of Arecor's specialty hospital products can be brought to market faster, and at lower risk and cost, than would be expected for standard new drug development. For Arecor's diabetes programmes, the safety and efficacy of insulin is already proven and there is likely a lower burden regarding clinical studies that are required for approval.

· Broad applicability across growing pharmaceutical markets: Arecor partners with global pharmaceutical and biotechnology companies to apply the Arestat™ technology to their proprietary products under a technology licensing model. These products can be at any stage in development from early phase clinical development through to products that are already on the market. The main areas of applications of the technology are novel biologicals, biosimilars, therapeutic vaccines and therapeutic peptides.

· Extensive intellectual property protection: Arecor has developed extensive intellectual property protection both of its Arestat™   formulation technology and of the novel formulations of products it develops, comprising patented formulation platforms, know-how, product related IP and trade secrets, which maximise innovation, protection and commercial success .

· Strong management team and Board: Arecor's management team has significant experience in the specialty pharmaceutical industry and of managing high growth companies, capable of executing a major value proposition in the specialty pharmaceutical field.

Use of Proceeds

The net proceeds of the Placing will be used to:

· Progress the Company's lead diabetes products

· Develop and expand its pipeline of specialty hospital RTU and RTA products

· Build the team

· Bolster working capital and strengthen balance sheet

Admission

The Directors believe that Admission will be an important step in the Group's development and will assist the Group in its development by raising its public profile, widening its shareholder base, providing potential future access to development capital to progress its current and future pipeline of proprietary products and enabling it to expand within its chosen therapy areas and expand its commercial partnerships. It will also provide the Group with the ability to incentivise its employees through share incentive plans, which should assist it in continuing to attract, retain and motivate high calibre employees.

IMPORTANT NOTICES

Panmure Gordon, which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting exclusively for the Company and no-one else in connection with Admission. Panmure Gordon will not regard any other person as its client in relation to Admission and will not be responsible to anyone other than the Company for providing the regulatory protections afforded to its clients, nor for providing advice in relation to the contents of this announcement or any transaction, arrangement or other matter referred to herein.

Neither Panmure Gordon, nor any of its directors, officers, employees, advisers or agents accepts any responsibility or liability whatsoever for or makes any representation or warranty, express or implied, as to the truth, accuracy or completeness of the information in this announcement (or whether any information has been omitted from the announcement) or any other information relating to the Company, its subsidiaries or associated companies, whether written, oral or in a visual or electronic form, and howsoever transmitted or made available or for any loss howsoever arising from any use of this announcement or its contents or otherwise arising in connection therewith.

 

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