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Xenetic Biosciences (XEN)

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Tuesday 29 November, 2011

Xenetic Biosciences

Completion of Subscription Agreement

RNS Number : 9227S
Xenetic Biosciences PLC
29 November 2011
 



 

Xenetic Biosciences PLC

('Xenetic Bio' or the 'Company')

 

First Closing Update

Completion of Subscription Agreement

 

£12.18 million Gross Proceeds at premium of 69.2 %

 

Xenetic Bio (AIM: XEN.L), the bio-pharmaceutical company specialising in the development of high-value differentiated biologic drugs and vaccines, announces completion of the Subscription Agreement entered into as part of the Proposals set out in the Shareholder Circular of 4 August 2011 (the "Circular"), and as approved by shareholders at the Company's General Meeting held on 2 September 2011. Defined terms in this announcement shall have the meanings given to them in the Circular unless the context requires otherwise. 

 

Pursuant to the Subscription Agreement, SynBio LLC has subscribed for 110,800,000 New Ordinary Shares (the "Subscription Shares") in the Company at 11p per New Ordinary Share, representing a premium of 69.2% to the mid market closing price of a Xenetic Share at close of business on 28 November 2011, thereby raising £12.188 million before expenses. Application has been made to AIM for admission of the Subscription Shares and it is expected that admission will take place on 2 December 2011.

 

As a result of the issue of the Subscription Shares, the Issued Share Capital of the Company is 288,232,255 Ordinary Shares. SynBio LLC is now the beneficial owner of an aggregate of 144,800,000 Ordinary Shares, representing 50.24% of the Issued Share Capital of the Company as enlarged by the issue of the Subscription Shares.

 

The Company expects that completion of the acquisition of SymbioTec will occur within the timeframe previously announced, namely by no later than 15 December 2011.

 

With respect to the proposed Open Offer, the Company will monitor near term market conditions prevailing after completion of First Close (that is, after completion of the acquisition of SymbioTec), particularly as respects the Ordinary Share price, to determine whether the Open Offer should be pursued.

 

Further announcements will be made in due course.

 

Commenting on Completion of the Subscription Agreement, M. Scott Maguire, CEO of the Company, said:

 

"The Company now has the capital to accelerate its drug development pipeline and, in our view, significantly enhance shareholder value. Our primary focus will be on the positive human clinical data that is being generated by our partnerships in Russia and India, thereby providing comfort on the drug candidates' potential for success.

 

"Our de-risked approach to biotech development is exemplified through the 12 novel drug candidates under the Russian and Indian human proof of concept initiatives; this, combined with the potentially large number of additional new candidates able to be developed utilising our proprietary platform technologies, is expected to yield significant shareholder value going forward. We look forward to the early initiation of clinical trial development in Europe and the USA of the currently most promising candidates."

 

Enquiries:

Xenetic Biosciences plc

+44 (0)20 7389 5015

M. Scott Maguire, Chief Executive Officer




Singer Capital Markets (NOMAD & Broker)

+44 (0)20 3205 7500

Claes Spång




Walbrook PR

Paul McManus

+44 (0)20 7933 8780

paul.mcmanus@walbrookpr.com

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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