Investors in Motif Bio PLC (LON:MTFB) will be buoyed by news that a leading US institutional investor has snapped shares in the antibiotic developer at market value.
The sale was made by Amphion Innovations PLC (LON:AMP), an early backer of the business, which sold almost 9mln shares at 31p each, netting US$3.7mln in the process.
READ: Motif Bio launches accelerated book-build placing to raise approximately £10mln to boost iclaprim investments
It should be noted that normally with big trades such as this, the stock is offloaded at a discount. While the identity of the buyer is not known, the words “leading institutional investor” should boost sentiment.
The share price nudged up just 1.3% to 32.05p, which suggests the market hasn’t grasped the importance of the day’s announcement for Motif.
For AIM-listed Amphion, the influx of cash will allow the technology incubator pay back certain loans due in full by the year-end. After the disposal, it retains a 9.53% stake in Motif worth around US$11mln.
For Motif, the next year will be pivotal for the business. After successfully concluding two Phase III clinical trials for lead drug iclaprim, it is currently making a rolling data submission to the US regulatory authorities.
Northland Capital reckons Motif is worth 115p a share.