Solvonis Therapeutics PLC (LSE:SVNS) has formalised its plans to acquire Awakn Life Sciences, signing an agreement that lays out how the transaction will take place.
It values Awakn at approximately £5 million, with Solvonis set to issue over two billion new shares to fund the transaction.
Under the terms, Awakn shareholders will receive 46.67 new Solvonis shares for every Awakn share they hold.
Restricted share units and deferred share units in Awakn will be exchanged at the same ratio while existing Awakn warrants will be swapped for over 700 million new Solvonis warrants.
The deal is subject to several key approvals. Awakn shareholders must approve the acquisition at a special meeting, where at least two-thirds of votes must be in favour.
The Supreme Court of British Columbia must also give its approval, and regulatory clearance is required from the Canadian Securities Exchange and the UK Financial Conduct Authority.
Awakn will soon send an information circular to its shareholders, outlining the full details of the transaction and seeking commitments from key investors to support the takeover.
If all approvals are secured, Solvonis expects to complete the acquisition in the second quarter.
Awakn will bring with it two clinical-stage assets and a pre-clinical programme into Solvonis’ portfolio.
The most advanced asset is AWKN-001, a treatment for alcohol use disorder (AUD) that combines ketamine with therapy.
Early clinical trials have shown remarkable results, with abstinence rates improving from 2% to an impressive 86% over six months.
A phase III evaluation, the largest of its kind to date for racemic ketamine-assisted therapy in AUD, is underway.
AWKN-002 pairs esketamine delivery with structured alcohol education, providing a new approach to tackling this addiction.
In the same announcement, Solvonis published its nine-month results for the period ended September 30, which revealed it made an operating loss of just over £1 million - reflecting its investment in R&D. It ended the period with £940,000 in cash.