Brief: Eagle To Buy Acacia Pharma, Values Capital At 94.7 Mln Euros

Eagle Pharmaceuticals

28/03/2022 07:15

March 28 (Reuters) - Acacia Pharma Group PLC  ACPH.BR :
    * AGREEMENT ON TERMS OF A TRANSFER OF ENTIRE ISSUED AND TO
BE
ISSUED SHARE CAPITAL OF ACACIA TO EAGLE BY WAY OF A SCHEME OF
ARRANGEMENT UNDER PART 26 OF COMPANIES ACT 2006
    * ACACIA BOARD APPOINTED GREENHILL TO UNDERTAKE REVIEW OF
STRATEGIC ALTERNATIVES TO MAXIMISE VALUE FOR ACACIA SHAREHOLDERS
    * EXPECTS IT WOULD REQUIRE A MINIMUM OF APPROXIMATELY
US$115M OF
ADDITIONAL CASH TO FUND OPERATIONS TO BREAK-EVEN (BASED ON
PROJECTIONS ASSUMING BREAK-EVEN BY EARLY FY2025)
    * FINANCIAL CONDITION IMPACTED BY PHYSICAL ACCESS
LIMITATIONS
CAUSED BY PANDEMIC, POSTPONEMENT OF SURGICAL PROCEDURES
    * EACH SCHEME SHAREHOLDER WILL RECEIVE AS CONSIDERATION FOR
EACH
SCHEME SHARE, EUR 0.68 IN CASH AND 0.0049 NEW EAGLE SHARES
    * PROPOSED TRANSACTION VALUES ACACIA'S EXISTING ISSUED AND
TO BE
ISSUED SHARE CAPITAL AT APPROXIMATELY EUR 94.7 MILLION ON A
FULLY DILUTED BASIS
    * CASH PORTION OF CONSIDERATION REPRESENTS APPROXIMATELY 75
PER
CENT. OF TOTAL
    * NEW EAGLE SHARES THAT ACACIA SHAREHOLDERS WOULD RECEIVE
REPRESENT APPROXIMATELY 25 PER CENT
    * TOTAL CONSIDERATION EQUATES TO EUR 0.90 FOR EACH SCHEME
SHARE
    * SIGNIFICANT REDUCTION IN AVAILABLE LIQUIDITY AS NET
REVENUE IN
2021 AND SO FAR IN 2022 CONTINUES TO LAG BEHIND EXPECTATIONS

Source text for Eikon:  ID:nGNE38Fxtd 
Further company coverage:  ACPH.BR 

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