Tiziana Life Sciences PLC (LON:TILS, NASDAQ:TLSA) expects its demerged StemPrintER business will be floated on the London Stock Exchange’s standard list late in the fourth quarter, followed potentially by a dual Nasdaq quote next year.
The new, independent diagnostics business will be known as Accustem Sciences, and the spin-off will allow Tiziana to focus on its clinical portfolio.
Tiziana is using dividend in specie to affect the split. This where a dividend is paid not in cash, but in assets of the company.
In the case of Tiziana, Accustem will receive the breast cancer diagnostic StemPrintER and the SPARE genomics-based personalised medicine business plus cash reserves of around £1mln. Accustem will then allot shares on a one-for-one basis to Tiziana investors.
Warrant-holders will be granted equivalent instruments in the demerged company, investors were told.
“Demerging the genomic risk assessment assay StemPrintER for breast cancer can enable the separate therapeutic and genomics entities to seek the most suitable independent funding or partnerships to move forwards and highlight the value of each segment as a ‘pure-play’,” Proactive analyst Emma Ulker said in a recent note on the company.
She pointed out that StemPrintER was shown in a retrospective study to be superior to the standard assay acquired by Exact Sciences as part of a US$2.8bn takeover deal.