Ixico, Phytopharm neurology news
Phytopharm will reverse merge with medical imaging company Ixico Ltd. Phytopharm will initially issue 8 million new ordinary shares to Ixico shareholders and has proposed to issue an additional 465,350 shares. Ixico shareholders will receive 15.7 new shares for each Ixico Ltd. share held prior to completion. The deal is valued at about £5.6 million ($9 million), based on Phytopharm's closing price of 1.33p on May 20, the day before the company suspended trading. Phytopharm resumed trading on Sept. 24. Following completion of the acquisition, the parties expect that Phytopharm shareholders will own about 45% and Ixico Ltd. shareholders will own about 55% of the resulting company, which will be renamed Ixico plc. The deal is expected to close on Oct. 15, subject to Phytopharm shareholder approval at the general meeting scheduled for Oct. 14. Andy Richards, current Ixico Ltd. non-executive chairman, will become non-executive chairman and CEO of the combined company.
At July 31, Phytopharm had £5.2 million ($7.8 million) in cash and an operating loss of £3.1 million ($4.6 million) for the six months ended March 31. At May 31, Ixico Ltd. had £859,480 ($1.3 million) in cash and a 12-month operating profit of £378,777 ($676,423). ...