ImmuPharma PLC (LSE: IMM) said the Belgian business of ING Group NV (Euronext: INGA; NYSE: ING) has taken a 4 percent stake in the company with the exercise of warrants issued in December 2006. The warrants were exercised on December 24 2009.
The warrants were issued when ING agreed to advance €3 million to the company's wholly owned subsidiary ImmuPharma France SA by way of a bond which was interest free and unsecured.
At the Euro/Sterling exchange rate when these financing arrangements were agreed, the effective subscription price of the warrants was 62 pence per share. ING will have 3,245,280 shares following the exercise.
Following the share issue and a separate, recent exercise of options, ImmuPharma will have 81,091,463 ordinary shares in issue.
Chairman Richard Warr said: "ING has been a strong supporter of ImmuPharma over the last three years. The acquisition of a 4 percent stake in ImmuPharma by this eminent life science specialist investor underlines their confidence in the future development of the company.”
Dr Denis Biju-Duval of ING was cited as saying: "ImmuPharma's management team has demonstrated during the last three years that it was able to deliver excellent progress in term of clinical results and commercial perspectives on its major compound while strengthening its links with some major research partners as illustrated by the ongoing relationship with CNRS."
ImmuPharma is a drug discovery and development group with its key operations in London and subsidiaries in Mulhouse, France and Basle, Switzerland. The company aims to develop novel drugs to treat serious medical conditions for which there is a high unmet need. It has five drugs in development to treat lupus, cancer, severe pain, highly resistant infections like MRSA as well as inflammatory and allergic disorders.
Its lead candidate for the treatment of Lupus, Lupuzor, a chronic, life-threatening autoimmune disease, was licensed to Cephalon Inc in a transaction worth up to US$500 million in milestone payments in addition to significant royalties. To date, it has received US$45 million in cash.