Summit Corp plc - Proposed placing and open offer
11 Dec 2009
* Placing to raise up to GBP6.0 million before
expenses from existing and new
shareholders
* Open Offer to raise up to GBP2.2 million before
expenses from existing
Shareholders
* Singer Capital Markets appointed as Nominated
Adviser and Broker with immediate
effect
Oxford, UK, 11 December 2009 - Summit Corporation plc (AIM: SUMM)
is pleased to announce a proposed placing of up to 120,678,456 new
ordinary shares of 1 penny ("New Ordinary Shares") to raise
GBP6.0 million before expenses with new and existing investors
(the "Placing"). In addition, the Company is looking to raise up to
a further GBP2.2 million before expenses through an open offer of
up to 43,725,177 New Ordinary Shares to existing shareholders (the
"Open Offer"). The New Ordinary Shares are issued at 5 pence per
share representing a discount of approximately 35.5 per cent. to
the closing price of 7.75 pence per share on 10 December 2009.
Summit is also pleased to announce the appointment of Singer Capital Markets ("Singer'") as the Company's Nominated Adviser and Broker with immediate effect.
In addition, the Company has separately announced today that it has been awarded a GBP2.2 million grant from The Wellcome Trust to fund the development of the Company's infectious disease programme targeting Clostridium difficile.
Summit is a UK based drug discovery company that has built a Product Portfolio and an innovative technology platform developing second generation iminosugars for use in drug discovery. In the last 18 months, the Company has demonstrated a track record of technical achievement and commercial exploitation as illustrated by the establishment of the Partnered Product Portfolio. In addition to the C. difficile programme above, this Portfolio comprises seven drug programmes and requires no further investment from the Company but has contractual success-based development, regulatory and sales milestone payments totalling over $160 million plus sales royalties on certain products of up to 13%.
Highlights
The Placing and Open Offer are intended to:
* Provide Summit with financial resources that will
last until at least December
2011, excluding milestone payments from existing and new
deals
* Fund key activities in the development of the
Company's proprietary iminosugar
technology platform:
* Development of the diabetes and
anti-viral programmes
* Expansion of the iminosugar
collection
* Ensure the Company benefits from milestone payments
from existing programme
deals
Summary
Singer as broker and adviser to
the Company and Hybridan LLP acting as placing agent have on behalf
of the Company conditionally placed 120,678,456 million New
Ordinary Shares with institutional investors at a price of 5 pence
per New Ordinary Share to raise GBP6.0 million before
expenses. The Placing has been underwritten by Singer.
In conjunction to the Placing, the Board also announces details of the Open Offer to existing shareholders who qualify to receive it, that may raise up to a further GBP2.2 million through the issue of New Ordinary Shares at 5 pence each.
The Board of Summit considers these proposals to be in the best interests of the Company and unanimously recommends Shareholders to vote in favour, as they intend to do with respect to their own holdings.
Barry Price, PhD, Chairman of Summit, said, "This re-financing represents a re-launch of Summit and will secure the financial future of business until at least December 2011. This investment will support key activities as the Company seeks to exploit the potential offered by the iminosugar technology platform for the discovery of new medicines to treat a range of major diseases."
A Circular, providing Shareholders with information about the background to and reasons for the fundraising and containing a notice of General Meeting of the Company convened for 10 am on 30 December 2009, will be sent to Shareholders on 14 December 2009. Defined terms in this announcement have the same meaning as in the Circular that will be posted to Shareholders.
For more information, please contact:
Summit Corporation plc
Steven Lee,
PhD
Richard Pye, PhD
Tel: +44 (0)1235 443939
Singer Capital Markets
Shaun Dobson
Claes Spång
Tel: +44 (0)20 3205 7500
Hybridan LLP
Claire Louise Noyce
Kelly Gardiner
Tel: +44 (0)7947 4004
The full text of this announcement is available on RNS.
