By Michael Susin
Shares in Cizzle Biotechnology Holdings PLC rose on Monday after the company said it had entered into an agreement to acquire a 5% stake in the commercialization of a Covid-19 treatment.
The agreement is with Conduit Pharmaceuticals Ltd. and St George Street Capital Ltd., and Cizzle has acquired the shareholding for £ 1.88 million ($ 2.5 million) through a share issue, it said.
The shares at 0936 GMT rose 0.47 pence or 19% to 3.0 pence.
Cizzle will also receive 5% of the amounts related to any AstraZeneca PLC commercialization or sublicensing of assets for the treatment of lung and heart inflammatory diseases.
The UK-based diagnostic developer said it would initially pay GBP1 million by issuing 25 million shares at a price of 4.0 pence to Conduit and that the remaining amount would be paid after shareholder approval or on the first anniversary of completion.
The value represents a premium of 56.9% compared to the closing price in the intermediate market on 11 February, it is stated.
Conduit will have a 9% stake in Cizzle after the first payment, it added.
“On 20 September 2021, we announced that we had acquired a stake in SGSC’s AZD 1656 asset, enabling the company to receive royalty payments of up to GBP5 million, and shortly after SGSC contracted the company to develop an associated companion diagnostic test, for which we will receive fees of up to GBP1 million, “Executive Chairman Allan Syms.
New shares are expected to be admitted on 17 February.
Write to Michael Susin at [email protected]