China Medical System Holdings Limited invests £3m

RNS Number : 0552Y

Destiny Pharma PLC

01 December 2017

 

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE EU MARKET ABUSE REGULATION (596/2014). UPON THE PUBLICATION OF THE ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

Destiny Pharma plc

("Destiny Pharma" or "the Company")

Subscription for Ordinary Shares

China Medical System Holdings Limited invests £3.0 million in Destiny Pharma

Highlights

·      Investment will be used to accelerate the development of Destiny Pharma's novel antimicrobial pipeline

·      Subscription for 1,910,828 new ordinary shares at a price of 157p per share

·      Together with money raised at the time of Destiny Pharma's placing and admission of shares to trading on AIM, gross funds recently raised now stands at over £18 million

·      Destiny Pharma and China Medical System Holdings Limited have also finalised a development and commercialisation agreement for Destiny Pharma's pipeline in China and certain other Asian countries (excluding Japan) (see separate announcement released today)

Brighton, United Kingdom - 1 December 2017 - The Board of Destiny Pharma (AIM: DEST), a clinical stage biotechnology company focused on the development of novel anti-microbial drugs, which address the global problem of anti-microbial resistance (AMR), are pleased to announce that China Medical System Holdings Ltd ("CMS"; HKSE:0867) has, through its wholly owned subsidiary CMS Medical Venture Investment Limited, invested £3.0 million in Destiny Pharma to accelerate the development of the Company's pipeline of drug candidates. This follows finalisation of the development and commercialisation agreement with CMS, separately announced today.

Neil Clark, CEO of Destiny Pharma, noted, "Following the successful flotation, in which Destiny raised £15.3m, and this additional equity investment of £3m by CMS, Destiny is well funded through to 2020. The Company is now focused fully on delivering the phase 2b clinical trials for its lead programme XF-73 and developing its earlier pipeline over the next two years".

The investment has been made by way of a subscription, dated 30 November 2017, for 1,910,828 new ordinary shares (the "Subscription Shares") at a price of 157p per share.

Application has been made to the London Stock Exchange for the Subscription Shares to be admitted to trading on AIM. It is expected that Admission will become effective and that dealings in the Subscription Shares, will commence at 8.00 a.m. on or around Monday 4 December 2017.

Following the issue of the Subscription Shares, the Company's issued share capital will comprise 42,447,948 ordinary shares of 1 pence each. The total number of voting rights in the Company will be 42,447,948. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority.

For further information, please contact:

Destiny Pharma

Neil Clark, CEO

Simon Sacerdoti, CFO

[e-mail]

[phone]

FTI Consulting

Simon Conway / Victoria Foster Mitchell / Hanna Skeppner

[e-mail] 

[phone]

Cantor Fitzgerald Europe (Nominated Adviser and Broker)

Philip Davies / Will Goode, Corporate Finance

[e-mail]

[phone]

About Destiny Pharma

Destiny Pharma is an established, clinical stage, innovative biotechnology company focused on the development of novel medicines that represent a new approach to the treatment of infectious disease. These potential new medicines are being developed to address the need for new drugs for the prevention and treatment of life-threatening infections caused by antibiotic-resistant bacteria, often referred to as "superbugs". Tackling anti-microbial resistance has become a global imperative recognised by the WHO and the United Nations, as well as the G7 and the G20 countries. For further information, please visit https://www.destinypharma.com 

About China Medical System Holdings Limited

CMS is a specialty pharmaceutical company based in China, focusing on marketing, promotion and sales of prescription drugs and other medicinal products to all therapeutic departments in hospitals nation-wide. CMS builds up its product portfolio for its target markets by asset acquisition, equity investment, licensing-in and distribution partnership on the global basis as well as in-house R&D. It is publicly traded on the Hong Kong Stock Exchange (867.HK) with a market capitalisation of approximately HK$39.9 billion (c. £3.8billion) as at 28 November 2017.

 

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