First Day of Dealings

RNS Number : 2894O

Port Erin Biopharma Investments Ltd

15 September 2011

 



15 September 2011

Port Erin Biopharma Investments Limited

("Port Erin" or the "Company")

Admission to AIM & first day of dealing

Port Erin, a company focused on investing in the biotechnology and biopharmaceutical sectors, is pleased to announce the admission today of its ordinary shares to trading on the AIM market of the London Stock Exchange ("Admission") and the commencement of dealings in the ordinary shares under ticker symbol PEBI.

HIGHLIGHTS

·     Successfully raised £3m via a placing at 10p per ordinary share.

·     Experienced Board with strong investment expertise.

·     Focused on investing in companies that have the potential to generate substantial revenues through the development of biopharmaceutical drugs.

The Company has raised £3,000,000 before expenses via a placing at  10p per share. The placing comprises the issue of 30 million new ordinary shares and the grant of 30 million warrants exercisable at 12.5p per ordinary share to subscribers of the placing shares. The ordinary shares being offered pursuant to the placing will represent 90.9 percent of the enlarged share capital of the Company.

The Company's Non-Executive Chairman is Jim Mellon, who has had a successful career in the fund management industry. During the past two years, Mr Mellon has invested widely in the biopharma industry. The Company intends to co-invest wherever possible alongside Mr Mellon in investments that he has identified.

Tom Winnifrith is a Director and Chief Investment Officer of the Company.  He is the founder and CEO of PLUS quoted Rivington Street Holdings Plc. Tom established the t1ps Investment Management operation as part of the Rivington Group in September 2007 and is the senior Fund Manager at t1ps Investment Management.

Nicholas Woolard, Non-Executive Director, started his career with the international division of Barclays Bank and enjoyed thirty years with the company during which he saw service in three offshore financial services centres, as well as stints in London's West End and the City.

Libertas Capital Corporate Finance Limited is Nominated Adviser to the Company and Rivington Street Corporate Finance Limited is the Company's broker.

Downloadable versions of this announcement and admission document are available on the following web address:

www.porterinbiopharma.com

Jim Mellon, Non-Executive Chairman of the Company said:

"We are delighted that the AIM flotation of the Company has now been completed successfully. We believe that recent progress in medical research is opening up opportunities for biopharmaceutical companies to develop new treatments for many of the diseases that impact on life expectancy and life quality. The Company will invest in both quoted companies, which offer the benefits of liquidity, and also in unquoted companies which offer the attraction of additional capital gains upon completion of a successful IPO."

-ENDS-

For further information, please contact:

Libertas Capital Corporate Finance Limited

Sandy Jamieson                                               0207 569 9650

Rivington Street Corporate Finance Limited

Dru Edmonstone/ Jon Levinson                 0207 562 3389

Overview

Port Erin is a new company incorporated on 3 May 2011 under the law of the Isle of Man for the purpose of investing in the biotechnology and biopharmaceutical sector. The Company's strategy is to create value for shareholders through investing in companies that have the potential to generate substantial revenues through the development of biopharmaceutical drugs.

The Directors intend to focus on investing in biotechnology and biopharmaceutical companies operating on the West Coast of the United States of America, where many biotech companies are based. Port Erin has been established as a publicly traded investing company which will offer shareholders an opportunity to participate in opportunities in the biotechnology and biopharmaceutical sector.

Investing Policy

The Company aims to establish a portfolio of 20 to 25 investments in biotechnology and biopharmaceutical companies. The majority of these companies are likely to be based in the US where the industry is centered. The Company will invest in both quoted companies, which offer the benefits of liquidity and also in unquoted companies which offer the attraction of additional capital gains upon completion of a successful IPO. The Company will be a passive investor.

Because of the high risk nature of investment in companies engaged in drug discovery and development, the Company will restrict the amount invested in any one company to an amount not exceeding 10 per cent. of the Net Asset Value of the Company at the time of investment.

In order to ensure that it has some liquidity in order to release funds if needed for a given investment, the Company will invest a maximum of 40 per cent. of its Net Asset Value at the time of making its final unquoted investment in unquoted investments.

The Company aims to deliver capital growth by realising capital gains when it considers that the valuation of individual investments looks to be excessive or, as is often the case in this sector, as a result of trade sales.

The Directors expect that the Investing Policy can be substantially implemented within 18 months of Admission.

Assets and investments will be held by the Company directly or through the individual share custodians of the brokers used by the Company to acquire the shares.

Any material variation to the Investing Policy will require the approval of Shareholders at a general meeting of the Company in accordance with the AIM Rules for Companies.

 

END

 

 

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