Business
Option for potential sale of interest in AZD1656
Option for potential sale of interest in AZD1656.
About this update from Caledonian Holdings Plc.
[{"type":"text","content":"\n \n \n \n \n \n \n This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (596/2014/EU) as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018.\n \n \n \n 20 April 2023\n \n \n \n Vela Technologies plc\n \n \n \n \n (\"Vela\" or \"the Company\")\n \n \n \n \n \n \n \n Put Option for potential sale of Economic Interest in AZD1656\n \n \n \n The Board of Vela (AIM: VELA), an AIM-quoted investing company focused on early-stage and pre-IPO disruptive technology investments, is pleased to announce that the Company has today entered into a put option agreement (\"the Option Agreement\") to give the Company the right, but not the obligation (\"the Option\"), to sell its economic interest in the commercialisation of the Covid-19 application of AZD1656 for a total consideration of £4.0 million. The Option is being granted by Conduit Pharmaceuticals Limited (\"Conduit\") and its prospective parent company, Murphy Canyon Acquisition Corp (\"Murphy\"), a Company listed on NASDAQ. Should the Option be exercised by Vela the consideration that would be payable to Vela will be satisfied through the issuance of new shares of authorised common stock of par value $0.001 of Murphy (\"the Consideration Shares\"). The Option is exercisable solely at the discretion of Vela and Vela will pay Conduit £400,000 in cash as the premium for the Option, with the consideration to be settled shortly from Vela's existing cash resources.\n \n \n \n \n \n The Option is exercisable in whole at any time from the completion of Conduit's proposed merger with Murphy (\"the Merger\") until the earlier of the date that is six months from the Merger and 7 February 2024. The Option may be exercised only if the Merger concludes and the new shares in Murphy issued as a consequence of the Merger are listed and publicly traded on the NASDAQ stock exchange in the United States. Should Vela exercise the Option, the Company will hold shares in Murphy (to be re-named Conduit Pharmaceuticals Inc.) as a publicly traded company on NASDAQ. \n \n \n Vela entering into the Option does not change the book value of the Economic Interest (as defined below) which remains held at £2.35 million in line with the Company's most recent published unaudited interim results as at 30 Septe...