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The Markets
by Proactive
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The Markets
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Pharma & Biotech

Poolbeg Pharma says share sale will widen the investor base and increase future liquidity

One of the buyers is an experienced life sciences investor

Poolbeg Pharma PLC (AIM:POLB, OTCQB:POLBF) said interest had emerged in £1.6mln-worth of shares held by one of its main investors.

The company said the buyers, who will pay 5.9p a share, Friday’s closing price, have shown a great deal of interest in Poolbeg's story following its IPO last July.

The stock, currently locked up and held in trust by Croft Nominees, was part of an in-specie distribution of equity following the spin-off from Open Orphan.

“Coming mainly from high-net-worth family offices, our new investors have shown great interest in the Poolbeg story, our significant progress since IPO, and our capabilities in developing novel infectious disease products utilising our unique cost-effective model,” said chairman Cathal Friel.

He told the market the share sale had followed "significant efforts" to widen the investor base, increase future liquidity, and ultimately "maximise shareholder value over the long-term".

“Due to the nature of the lock-up period, which was designed to allow for an orderly market following our admission to AIM, prospective investors looking to build more substantial stakes were unable to do so,” the Poolbeg chairman explained.

“These proposals ensure that any potential shares sold will be going to quality, long-term holders, whilst giving distribution in specie shareholders the option to sell shares prior to the end of the lock-up period if they choose to do so.

“In addition, there will be substantially greater liquidity in our shares once the distribution in specie shares have been distributed after April 26 and we believe this will certainly help us to attract even more new shareholders."

He pointed out the company was well capitalised with almost £21mln in the bank at the year-end.

This, he said, would allow it to build on the significant progress the firm had made post-IPO.

Its lead asset, POLB001, for severe influenza, will enter the clinic in June, while it has licensed a second asset, a nasally administered treatment for respiratory virus infections.

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