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Xenetic Biosciences (XEN)

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Friday 30 September, 2011

Xenetic Biosciences

Update on Closing on Major Transactions

RNS Number : 2511P
Xenetic Biosciences PLC
30 September 2011
 



 

Xenetic Biosciences plc

 ('Xenetic' or the 'Company')

 

Update on Closing on Major Transactions

 

Xenetic Biosciences plc (AIM: XEN.L)  the bio-pharmaceutical company specialising in the development of high-value differentiated biologic drugs and vaccines wishes to update the market on the closing of the major transactions first announced on 4th August 2011 on RNS Number 7316L.  Terms defined in that announcement and in the circular dispatched to Xenetic shareholders the same day have the same meanings when used in this announcement

 

The parties intention was that completion of the transactions ("Closing") would occur on or before 30 September 2011.  The current status of the transaction is summarised below:

 

·    Conditions precedent to Closing incorporated a set of deliverables from each of the Company, SynBio LLC (in Russia) and SymbioTec GmbH. While the Company is able to report that it has fully satisfied all matters for which it is responsible (save for Admission of the relevant consideration shares to trading), and that both SynBio and SymbioTec have embarked on necessary actions required to fulfill their respective contractual obligations, process delays have occurred in both Russia and Germany such that formal Closing by 30 September 2011 will not now be possible.

 

·    Based on detailed discussions with all counterparties, the Company wishes to advise the market that Closing is now anticipated to take place in the second half of October. Relevant announcements will be made at appropriate times.

 

Xenetic is the key partner providing the core technologies that are at the heart of the transformational transactions previously announced, which include:

 

·    the Russian State-sponsored fund, Rusnano, tasked with developing the technology industry in Russia, investing circa US$45m into SynBio LLC, which, in turn, has entered into a Co-Development Agreement with Xenetic (subject to certain conditions) for the development of up to six novel drug products using Xenetic's patented platform drug technologies.

·    SynBio LLC making an equity subscription for 110.8 million new ordinary shares in Xenetic at a price of 11 pence per share for total funding (before expenses) of £12.18m, and being granted a 1-for-10 share warrant subscription rights exercisable at 33 pence.

·    Xenetic acquiring by way of share consideration SymbioTec GmbH thereby gaining full ownership of the "Oncohist" orphan drug candidate for the treatment of Acute Myeloid Leukaemia and Acute Lymphoblastic Leukaemia; future applications of the "Oncohist" platform may also provide the basis of novel therapies for other cancer indications.

·    A new broad commercial agreement with Serum Institute of India, together with a share placing to them and granting of limited share warrant rights.

 

 

Commenting on the progress made so far on these important transactions, M. Scott Maguire, CEO of Xenetic said:

 

"In spite of there being a modest delay in this matter, the transactions represent a pivotal deal for the Company - to say nothing of their importance to the Russian State in developing their global biotech industry. Consequently all parties will continue to work assiduously to achieve Closing as soon as practically possible."

 

 

Enquiries:

Xenetic Biosciences plc

www.xeneticbio.com 

M. Scott Maguire, Chief Executive Officer

+44 (0)20 7389 5015

Singer Capital Markets (NOMAD & Broker)

+44 (0)20 3205 7500

Jeff Keating / Claes Spång


Walbrook PR

+44 (0)20 7933 8780

Paul McManus

paul.mcmanus@walbrookpr.com

Paul Cornelius

paul.cornelius@walbrookir.com

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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