Phytopharm PLC
01 March 2007
Company Contact: U.K. Investor Relations Contact:
Phytopharm plc Financial Dynamics
Dr Daryl Rees CEO David Yates
Mr Piers Morgan CFO Ben Atwell
+44 1480 437 697 +44 207 831 3113
www.phytopharm.com
Placing of New Ordinary Shares raises £1.7 million
GODMANCHESTER, Cambridgeshire, U.K. (1March 2007) - Phytopharm plc (LSE: PYM)
('Phytopharm' or the 'Company') today announces that it has raised approximately
£1.7 million before expenses (£1.5 million after expenses) by way of a
conditional placing (the 'Placing') of 4,425,416 new ordinary shares of 1 pence
each in the Company ('Ordinary Shares'). The proceeds will be used to
strengthen the Company's balance sheet and continue the development of its
products.
Phytopharm has a strong product development portfolio, in particular its Hoodia
gordonii functional food for dietary weight loss which is partnered globally
with Unilever, and its Myogane and Cogane pharmaceutical neurological products,
which are currently in Phase I and II clinical development respectively.
Phytopharm also has a global partnership with Schering Plough for its veterinary
product, PhytopicaTM, which is currently marketed in the UK with launches
anticipated in major European territories in the second quarter of 2007.
The Placing represents 8.65 per cent. of the Company's issued share capital
prior to the Placing. The new Ordinary Shares have been placed with a range of
institutional investors by Teather & Greenwood Limited at a placing price of 38
pence per new Ordinary Share, which is within the quoted bid / offer spread
price on the London Stock Exchange at 12.00 noon today. The Placing was
undertaken pursuant to a resolution of shareholders at the Company's Annual
General Meeting on 23 January 2006 which approved the disapplication of
shareholders' pre-emption rights in relation to 10 per cent. of the then issued
share capital of the Company.
Application will be made on 2nd March 2007 for the new Ordinary Shares to be
admitted to the Official List and to the London Stock Exchange for such shares
to be admitted to trading on the London Stock Exchange's market for listed
securities ('Admission'). The Placing is conditional on Admission, which is
expected to become effective on 7 March 2007. When issued, the new Ordinary
Shares will rank pari passu in all respects with the Company's existing Ordinary
Shares. Following the Placing, Phytopharm will have a total of 55,606,309
Ordinary Shares in issue.
-ENDS-
NOTES TO EDITORS
Phytopharm plc
Phytopharm is a pharmaceutical development and functional food company whose
product leads are generated from medicinal plant extracts. The Company's
strategy is to develop these products through 'proof of principle' clinical
testing, and then secure partners for late stage development, sales and
marketing. This business model benefits from a lean cash burn. Laboratory,
manufacturing and clinical work is outsourced to selected specialists, operating
under expert in-house management. This operational structure allows access to
advanced research techniques whilst maintaining low fixed overheads and a lower
development cost structure.
For further information about Phytopharm please see our website at http://
www.phytopharm.com
This information is provided by RNS
The company news service from the London Stock Exchange