CIP Merchant Capital Ltd Investment in Circassia Pharmaceuticals plc (4967Z)
11 January 2020 - 2:18AM
UK Regulatory
TIDMCIP TIDMCIR
RNS Number : 4967Z
CIP Merchant Capital Ltd
10 January 2020
10 January 2020
CIP MERCHANT CAPITAL LIMITED
("CIP Merchant Capital", "CIP" or the "Company")
Investment in Circassia Pharmaceuticals plc
CIP Merchant Capital is pleased to announce its investment in
Circassia Pharmaceuticals plc ("Circassia"), a specialty
biopharmaceutical company focused on allergy and respiratory
diseases quoted on AIM. The Company has acquired, in aggregate,
12,800,000 ordinary shares in Circassia, representing approximately
3.4% of Circassia issued share capital, for a total consideration
of approximately GBP2.8 million.
In the year ended 31 December 2018, Circassia had revenue of
GBP48.3 million, a gross profit of GBP39.4 million and a net loss
attributable to its shareholders of GBP25.9 million from underlying
operations and a total loss of GBP117.1 million, which includes
losses of GBP20.7 million from non-underlying operations
(non-recurring/irregular expenditure) and loss of GBP70.5 million
from discontinued operations. In the six months ended 30 June 2019,
Circassia reported revenue of GBP27.9 million, a gross profit of
GBP20.3 million and a total loss of GBP19.0 million, and, as at 30
June 2019, had net assets of GBP103.2 million.
The Board of CIP believes Circassia has a clear route to
profitability, having recently announced that the revenues for the
2019 year are expected to fall in the mid-range of its previously
issued guidance of GBP60-GBP65 million. In April 2019, Circassia
announced the US Food and Drug Administration approval of Duaklir,
a drug for maintenance treatment of chronic obstructive pulmonary
disease, which was later launched in October 2019. Circassia has
also recently made what the Board believes to be positive changes
to its leadership team, hiring executives with a proven track
record.
Circassia now constitutes the Company's seventh portfolio
company.
For further information, please contact:
Merchant Capital Manager Limited (Investment Manager)
Marco Fumagalli +41 91 225 25
Carlo Sgarbi 60
Strand Hanson Limited (Financial & Nominated Adviser
and Broker)
Richard Tulloch / James Bellman +44 20 7409 3494
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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