EMV Capital (AIM:EMVC) rose 8% after unveiling a deal to acquire key drug assets from collapsed biotech Destiny Pharma, in a transaction worth up to £2.475 million.
The agreement, executed through subsidiary Moirai Acquisitions (Bidco), covers Destiny’s XF platform, a next-generation antibiotic technology designed to kill bacteria rapidly and limit the development of resistance.
The lead compound, XF-73, has already cleared a phase IIb trial for preventing post-surgical infections, with plans for a phase III trial in the US before Destiny’s collapse.
Bidco will pay £475,000 upfront, with up to £2 million more linked to milestones such as launching the US trial, securing regulatory approval, and a potential one-off payment from a licensing agreement with a Hong Kong pharmaceutical group.
The upfront payment was funded by a three-year loan arranged by EMV’s in-house corporate finance arm.
To support the integration, EMV has also led an equity raise of up to £725,000, expected to close this month. If fully subscribed, the group anticipates adding £1.86 million to assets under management.
The shares rose 3.25p to 45.25p.