Lipoxen raises £2.6 million through Strategic Placing and Warrant Agreement with Serum Institute of India Limited
SIIL is a beneficial holder of 4.10% in the current issued share capital of the Company. Following the issue of the Subscription Shares, SIIL will hold approximately 12% of the enlarged issued share capital in the Company. The Company has also entered into a warrant agreement with SIIL pursuant to which the Company has granted SIIL the right to subscribe for up to 2.7 million ordinary shares in the Company for a period of two years from 3 August 2006 at a subscription price of 35 pence per share.
Following the issue of the Subscription Shares to SIIL and assuming the exercise of SIIL's rights under the warrant agreement, SIIL will hold approximately 14% of the enlarged issued share capital of the Company.
As part of these agreements, SIIL has also been granted the right to appoint a non-executive director to the board of the Company. This right may only be exercised in the event SIIL holds no less than 12% of the total issued share capital of the Company. The funds raised through the subscription will allow the Company to drive clinical development of its pipeline of potential protein drugs and vaccines into clinical trials and appoint a leading biologic Contract Research Organisation. It will also allow Lipoxen to recruit additional laboratory staff in order to capitalize on the potential to broaden the Company's revenue generating collaborations.
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