REG-Arix Bioscience PLC Financial update on Harpoon Therapeutics acquisition by Merck (MSD)

Arix BioscienceAnnouncement

19/01/2024 07:15

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   Arix Bioscience PLC (ARIX)
   Financial update on Harpoon Therapeutics acquisition by Merck (MSD)

   19-Jan-2024 / 07:01 GMT/BST

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                              Arix Bioscience plc

                                        

      Financial update on Harpoon Therapeutics acquisition by Merck (MSD)

   LONDON,  19 January 2024:  Arix Bioscience plc  (“Arix” or the  “Company”)
   (LSE: ARIX),  a global  venture capital  company focused  on investing  in
   breakthrough biotechnology companies, provides  a financial update on  its
   expected returns from the Harpoon Therapeutics (NASDAQ: HARP)  ("Harpoon")
   acquisition by Merck  (NYSE: MRK)  following the  announcement that  Merck
   (known as MSD outside the United States and Canada), through a subsidiary,
   agreed to acquire Harpoon for $23.00 per share in cash for an  approximate
   total equity value of $680 million.

   The sale  of  Harpoon is  expected  to deliver  net  proceeds to  Arix  of
   approximately $18.9 million (£14.9 million  1 ).  This equates to  a £10.9
   million (8p per share) increase in  Arix’s £4 million prior holding  value
   of its Harpoon  interests and,  when combined with  prior realisations  of
   £12.5  million,  represents  an  overall  return  of  1.2x  on   the £23.3
   million total capital invested in Harpoon since Arix first invested.  2 

   Peregrine Moncreiffe,  Chairman  of Arix,  commented:  “Arix has  been  an
   investor in Harpoon  Therapeutics since  2017, and it  is great  to see  a
   company that we have been  a part of since  the early stages move  through
   the clinic and receive recognition for the platform they have worked  hard
   to develop. This acquisition by  Merck provides significant potential  for
   bringing life-saving treatment  to cancer patients  as they enhance  their
   oncology pipeline. In what  has been a difficult  time across the  biotech
   sector we see this M&A activity as a further sign of market recovery.”

   The transaction is expected to close in the first half of 2024.

    1  At prevailing GBP/USD  FX rate on 18  January 2024. Based  on $23  per
   share for Arix’s public shareholding, net $13 per share for Arix’s warrant
   shares and $3,500 per Series A  Preferred share, plus accrued interest  at
   8%

    2  £4.0 million valuation at 30 June 2023, as reported at interim results
   2023, for listed and Series A Preferred shares

                                      ENDS 

    

   Enquiries

   For more information on Arix, please contact:

    

   Arix Bioscience plc

   +44 (0)20 7290 1050

   ir 1 @arixbioscience.com

    

   Powerscourt Group

   Sarah MacLeod,  Nick Johnson, Molly Ring

   +44 (0)20 7250 1446

    2 arix@powerscourt-group.com

    

   About Arix Bioscience plc

   Arix Bioscience  plc  is  a  global venture  capital  company  focused  on
   investing in  breakthrough  biotechnology  companies  around  cutting-edge
   advances in life sciences.

    

   We collaborate  with exceptional  entrepreneurs and  provide the  capital,
   expertise, and  global  networks  to  help  accelerate  their  ideas  into
   important new treatments for patients. As a listed company, we are able to
   bring this exciting  growth phase of  our industry to  a broader range  of
   investors.  3 www.arixbioscience.com

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   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:           GB00BD045071
   Category Code:  PFU
   TIDM:           ARIX
   LEI Code:       213800OVT3AHQCXNIX43
   OAM Categories: 3.1. Additional regulated information required to be
                   disclosed under the laws of a Member State
   Sequence No.:   298385
   EQS News ID:    1818409


    
   End of Announcement EQS News Service

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References

   Visible links
   1. mailto:charlotte@arixbioscience.com
   2. mailto:arix@powerscourt-group.com
   3. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=889c637ce21c3a47a35c39202ebd9825&application_id=1818409&site_id=reuters9&application_name=news


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