Alexander David Investments plc, Tiziana Pharma Ltd. deal
Alexander David Investments (ADI) will reverse-merge with Tiziana in a deal that values Tiziana at £7.5 million ($12.5 million). ADI will issue 62.5 million shares at 12p per share. In connection with the reverse merger, ADI also said it plans to raise £2 million ($3.3 million) through the sale of 16.7 million shares at 12p in a private placement conditional upon a proposed 300-for-1 reverse stock split. Cairn Financial Advisers LLP is advising ADI, and Beaufort Securities Ltd. is the company's broker.
After the merger and split, former ADI shareholders will own 2% of the newco, former Tiziana shareholders will own 74% and investors in the private placement will own 20%. The remaining 4% will be owned by Planwise Group Ltd. through the conversion of £400,000 ($665,400) in convertible loan notes at 12p per share, plus interest. The 12p price is a 33% premium to ADI's close of 9p on Dec. 19, the last trading day before the company suspended trading. The newco will be named Tiziana Life Sciences plc. The deal is subject to approval by ADI shareholders. ...