Malin Corporation
plc
Malin reports 2024 Interim
Results
· Intrinsic equity value
estimate of €6.44 per share at 30 June 2024 and €6.33 per share at
22 August 2024
· Current cash balance of
approximately €62.9 million
· Proposed capital return to
shareholders of approximately €45 million by way of tender offer,
expected to take place in Q4 2024
· Notice of EGM issued today
to convene EGM and propose capital reduction in advance of tender
offer
Dublin-Ireland, 27 August 2024: Malin Corporation plc (Euronext Growth Dublin:MLC) ("Malin",
the "Company"), a company investing in highly innovative life
sciences companies, today publishes its interim results for the six
month period to 30 June 2024.
"We executed on our business strategy during the first half of
2024, with our investee companies continuing to achieve or progress
towards further important clinical, operational and transactional
milestones said Fiona Dunlevy, Executive Director,
commenting on the results. "Post period end, as previously announced,
Malin completed the divestment of its entire stake in CG Oncology.
This generated total cash proceeds of approximately €28.5 million,
a 175% gain on its total capital invested. With a current cash
balance of approximately €62.9 million, Malin is now progressing
with the necessary preparatory steps, further details below, ahead
of an intended tender offer later this year to return approximately
€45 million to shareholders."
Financial
Highlights
·
Estimated intrinsic equity value is calculated
using our estimate of the fair value of our investee company
holdings in accordance with the International Private Equity and
Venture Capital Valuation ("IPEV") guidelines, adjusted for
cash.
·
Malin's estimated intrinsic equity value per share
at 30 June 2024 was €6.44, compared to the estimated intrinsic
equity value per share as at 31 December 2023 of €6.56. The net
decrease in the intrinsic value during the first half of 2024 is
primarily attributable to the decline in the publicly traded share
price of Poseida and due to a downward revision to the valuation of
Malin's interest in Viamet.
·
Malin's estimated intrinsic equity value per share
at 22 August 2024 was €6.33, a 2% decrease compared to 30 June
2024. This decrease was attributable primarily to a decrease in the
share price of Poseida and a weakening of the US Dollar over the
period.
·
Corporate cash operating expenses for the first
half of 2024 were €1.3 million.
·
The Group's cash position at 30 June 2024 was
€35.7 million (31 December 2023: €29.3 million) and has increased
to €62.9 million at 22 August 2024, as a result of the divestment
of the Group's interest in CG Oncology.
Capital
Return
As part of its stated strategy,
Malin remains committed to returning excess capital of the business
to its shareholders having taken account of the corporate spending
needs of the business. This includes the possible investment of
additional capital into Malin's remaining investee companies if
attractive investment opportunities arise or if it is determined
the additional capital will help advance the investee company
towards a value inflection point or realisation opportunity. In
accordance with this strategy and following an assessment of its
capital requirements, Malin intends to return approximately
€45 million to shareholders.
Malin's board has concluded that a
tender offer will be used as the mechanism to return the capital to
shareholders. It is currently anticipated that the tender offer
will take place in Q4 2024. The terms of the tender offer have not
yet been determined and the tender offer will be conditional on the
approval of shareholders at a general meeting later this year. In
advance of this, the Company will need to complete a process to
create distributable reserves (see "Capital Reduction"
below).
Capital
Reduction
Under Irish law, a company may only
return capital to shareholders out of its "distributable reserves",
which generally means a company's accumulated realised profits less
accumulated realised losses, and includes reserves created by way
of a share capital reduction. In order to return capital to
shareholders by way of a tender offer, Malin must first create
additional distributable reserves by reducing its existing share
capital (the "Share Capital Reduction"). The Share Capital
Reduction requires the approval of shareholders and confirmation by
the Irish High Court.
Therefore, as a prior step to
launching a tender offer, Malin is asking shareholders to approve
the creation of further distributable reserves in the Company by
approving the reduction of the share capital of the Company by the
entire amount standing to the credit of the share premium account
and to treat the reserves created by such reduction as
distributable. The Company has today issued a Notice of EGM to
shareholders, outlining the proposed resolution to reduce the
Company's share premium account, and the related EGM will be
convened on 26 September 2024 at 10:30am in the Conrad Dublin
Hotel. A copy of the Notice of EGM is available to view within the
"Investors" section of the Company's website at
www.malinplc.com.
Investee Company
Updates
The investee company updates below
are consistent with those previously outlined in the Company's
announcement of 23 July 2024.
Poseida
Poseida has made important progress
across its three clinical-stage allogeneic CAR-T programs in 2024
to date, and has indicated that it expects to provide clinical
updates on each of these programs in the second half of this year,
subject to coordination with Roche in respect of their partnered
programs.
In May 2024, Poseida announced a
research collaboration and license agreement with Astellas to
develop novel convertibleCAR® programs by combining the innovative
cell therapy platforms from each of the companies. Under the
agreement, Poseida received $50 million upfront and may receive
potential development and sales milestones payments and royalties,
in addition to reimbursement for costs incurred as part of the
research agreement.
Poseida is also progressing its gene
therapy pipeline having presented promising preclinical data
earlier this year from its two fully non-viral lead programs for
the treatment of Hereditary Angioedema and Haemophilia A and showcasing the potential of Poseida's unique
and proprietary gene-editing and gene-insertion toolkit.
Malin has estimated the fair value
of its 12% interest in Poseida based on the closing market price of
Poseida's shares on 22 August 2024.
Kymab
Malin previously announced that in
connection with the sale of Kymab to Sanofi in 2021, Malin could
over time receive further payments in connection with its share of
milestone-related contingency payments.
In February 2024, Malin received a
payment of €6.5 million relating to the first of these potential
milestone-related contingency payments and the Company's intrinsic
value estimate at 22 August 2024 includes a fair value estimate of
€1.9 million related to the balance of the potential contingent
payments.
Viamet
In April 2022, Mycovia, the
successor company to Malin's investee company Viamet, announced the
approval from the FDA of VIVJOA™ (otesecanazole) for the treatment
of Recurrent Vulvovaginal Candidiasis ("RVVC") in females with a
history of RVVC and who are not of reproductive potential.
Additional studies are being performed for submission to the FDA,
with the aim of gaining regulatory approval to extend the targeted
patient population.
The need to complete this additional
development work has curtailed or delayed commercial launches of
the drug in the US and other markets thereby impacting the
milestones and royalties that may have become payable to Viamet,
and consequently to Malin, in the near term and we have revised our
estimate of the IPEV valuation of Malin's interest in Viamet on
that basis. We expect further clarity on the future regulatory,
commercial and strategic pathway in the months ahead.
Xenex
The challenging macroeconomic
situation facing hospitals in the US continues to be a major
headwind for Xenex. On the back of the FDA DeNovo authorisation for
its LightStrike™ device, granted in 2023, Xenex is exploring
initiatives for driving future sales growth and we look forward to
seeing the results of these initiatives in the company's 2024 sales
results.
Interim
Report
Malin's interim report and further
information on Malin is available to view on Malin's website
at www.malinplc.com,
under the "Investors" section.
ENDS
About Malin Corporation plc
Malin (Euronext Growth Dublin:MLC)
is a company investing in highly innovative life sciences
companies. Its purpose is to create shareholder value through the
application of long-term capital and operational and strategic
expertise to a diverse range of global healthcare businesses. Malin
has a focus on innovative businesses underpinned by exceptional
science and works with its investee companies, providing strategic
and financial support to enable them to reach their value
potential. Malin is headquartered and domiciled in Ireland and
listed on the Euronext Growth Dublin. For more information
visit www.malinplc.com
For
further information please contact:
Malin
Fiona Dunlevy, Executive
Director/Company Secretary
Tel: +353 (0)1 901 5700
cosec@malinplc.com
Davy Corporate Finance (Euronext Growth Listing Sponsor &
Joint Broker)
Brian Garrahy / Daragh
O'Reilly
Tel: +353 1 679 6363
Sodali & Co (Media enquiries)
Eavan Gannon
Tel: +353 87 236
5973
eavan.gannon@sodali.com