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InnovaDerma acquires Prolong

By BFN News | 07:48 AM | Tuesday 02 May, 2017


InnovaDerma, a UK developer of life sciences, beauty, and personal care products, has acquired the entire share capital of Ergon Medical Limited. InnovaDerma said Ergon owned the intellectual property rights of Prolong, the world's only medical device cleared by the US Food & Drug Administration for premature ejaculation. InnovaDerma said the board believed that the acquisition presented an excellent strategic fit as the group sought to diversify its income stream by growing its life sciences business division. It added: "This is to be achieved through the development of new products and selectively acquiring complementary FDA-cleared or approved products which are ready to be marketed and distributed worldwide and will further drive the Group's revenue and earnings. "The group is hiring specialist health care personnel to support the group's future growth of its life sciences business." InnovaDerma said the consideration for the acquisition was £1 million satisfied by the issue of ordinary shares in the company at a 25% discount to the average closing bid price three days prior to and three days post the announcement of the acquisition less the number of ordinary shares in the company which would be issued at the non-discounted average price to settle certain creditors totalling approximately £323,600. InnovaDerma said that in addition, the group would pay a royalty of £11 per unit to the vendor for each Prolong device sold (no minimum yearly royalty commitment) for the term of Prolong's patent, due to expire in 2031. If, during any calendar year, Prolong returned a 20% EBIT of net sales then the sellers would be entitled to a £150,000 bonus payment. Story provided by StockMarketWire.com

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