Open Orphan PLC (AIM:ORPH, OTC:OPORF)'s executive chairman expects to attract more high-quality long-term investors following the end of the lock-up arrangement with Poolbeg Pharma over legacy in specie shares.
Cathal Frie said: "Due to the nature of the lock-up period, which was designed to allow for an orderly market following Poolbeg's admission to AIM, prospective investors looking to build more substantial stakes were unable to do so.
“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.
Poolbeg Pharma says share sale will widen the investor base and increase future liquidity
“In addition, there will be substantially greater liquidity in our shares once the distribution in specie shares have been distributed after 26 April 2022 and we believe this will certainly help us to attract even more new shareholders."
Poolbeg Pharma was demerged from Open Orphan in June last year with the dividend in specie shares that were distributed to shareholders held in trust until later this month (26 April).
On Monday, Poolbeg said it received an offer to buy the in specie shares worth £1.6mln, or 5.9p each, from a group of new investors.