TIDMN4P
RNS Number : 2085M
N4 Pharma PLC
20 September 2021
20 September 2021
N4 Pharma Plc
("N4 Pharma" or the "Company")
Interim Results
N4 Pharma Plc (AIM: N4P), the specialist pharmaceutical company
developing Nuvec(R), a novel delivery system for vaccines and
cancer treatments, announces its unaudited interim results for the
six months ended 30 June 2021.
Highlights:
-- Continued strategy to focus on three work streams:
optimisation; in vivo studies; and other applications
-- Key focus on establishing collaborations with a view to
securing future commercial agreements, resulting in two Material
Transfer Agreements ("MTAs") to assess how well Nuvec(R) can bind
and be optimised for transfection with each respective party's
proprietary plasmid :
o the first of which operates in the gene therapy space
o the second is a pharmaceutical company developing its own
proprietary vaccine for Covid-19 using a DNA plasmid
-- Continued work with Nanomerics on the use of Nuvec(R) in
respect of the delivery of TNFalpha in the treatment of cancer, the
initial pilot study to assess the tolerance of different doses has
been successful
-- Pilot studies indicated that a lower dose of 10ug pOVA bound
to optimised, monodispersed Nuvec(R) gave a better result than a
50ug dose of the original, agglomerated Nuvec(R) used in previous
studies
-- Notifications of intention to grant patents from the
European, Australian, and Japanese patent offices
o Further strengthening the IP position around Nuvec(R) with the
European Patent Office intention to grant a divisional patent in
respect of composition
-- Contracted through Medicines Discovery Catapult ("Catapult")
a full-time Postdoctoral Researcher
-- Operating loss for the period was GBP970,628 (30 June 2020: GBP585,066)
-- Cash balance at period end of approximately GBP2.54 million
Nigel Theobald, Chief Executive Officer of N4 Pharma Plc,
commented:
"The first six months of the year has seen an acceleration in
our understanding of the capabilities of Nuvec(R) following our
optimisation work. This has been coupled with our first MTAs which,
in turn and together with results elsewhere, led us to review the
scope of the recently commenced in vivo work with Evotec pushing
some of this work into the second half of this financial year.
"Our strategy remains the same as it always has and that is to
generate sufficient proof of concept data with a view to attracting
large pharma and biotech partners to enter into collaborations to
explore using Nuvec(R) as their chosen delivery system. The issues
facing mRNA Covid vaccines in respect of storage and distribution
are well known following the Coronavirus pandemic. DNA vaccines are
more stable than mRNA yet need to use a much higher dose due to the
delivery systems currently chosen. Demonstrating suitable efficacy
whilst addressing the storage and dosage issues would, we believe,
greatly enhance Nuvec(R) as a potential delivery tool for vaccines
in the eyes of collaborators.
"With the short-term work programmes likely to provide plenty of
data points over the next three to six months coupled with the
ongoing MTA work we remain cautiously optimistic as we seek to
commercialise Nuvec(R). We continue to be well funded for all
existing work streams and look forward to analysing the results of
studies and sharing them with interested parties when they become
available."
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 which has been
incorporated into UK law by the European Union (Withdrawal) Act
2018. Upon the publication of this announcement via Regulatory
Information Service, this inside information is now considered to
be in the public domain.
Enquiries:
N4 Pharma Plc Via IFC Advisory
Nigel Theobald, CEO
Luke Cairns, Executive Director
SP Angel Corporate Finance LLP Tel: + 44 (0)20 3470 0470
Nominated Adviser and Joint Broker
Matthew Johnson/Caroline Rowe (Corporate
Finance)
Vadim Alexandre/Rob Rees (Corporate
Broking)
Turner Pope Investments (TPI) Limited Tel: +44 (0)20 3657 0050
Joint Broker
Andy Thacker
IFC Advisory Limited Tel: +44 (0)20 3934 6630
Financial PR
Graham Herring
Zach Cohen
About N4 Pharma
N4 Pharma is a specialist pharmaceutical company developing a
novel delivery system for vaccines and cancer treatments using its
unique silica nanoparticle delivery system called Nuvec(R).
N4 Pharma's business model is to partner with companies
developing novel antigens for vaccines and cancer treatments to use
Nuvec(R) as the delivery vehicle to get their antigen into cells to
express the protein needed for the required immunity. As these
products progress through pre-clinical and clinical programs, N4
Pharma will seek to receive upfront payments, milestone payments
and ultimately royalty payments once products reach the market.
Chairman's Statement
Half year results
During the six months to 30 June 2021, the operating loss for
the period was GBP970,628 (30 June 2020: GBP585,066) and in line
with planned expenditure.
The Company's cash balance at 30 June 2021 was GBP 2,542,680 (30
June 2020: GBP 2,443,518 ).
Operational update
The first part of 2021 saw the Company continue with its
strategy of three work streams: optimisation; in vivo studies; and
other applications. In addition, there was further focus on
establishing collaborations with a view to securing future
commercial agreements resulting in the execution of two Material
Transfer Agreements ("MTAs") during the period.
The MTAs are to assess how well Nuvec(R) can bind and be
optimised for transfection with each respective party's proprietary
plasmid the first of which operates in the gene therapy space
whilst the second is a pharmaceutical company developing its own
proprietary vaccine for Covid-19 using a proprietary DNA plasmid.
Each project has progressed well to date where we have been able to
demonstrate the successful loading and dispersion of Nuvec(R) with
each of the proprietary products at different doses. Each MTA
partner is now undertaking its own tests with Nuvec(R) to further
explore how it may work with their products.
Optimisation work
Optimising Nuvec(R) has been a core focus of the Company over
the last 18 months where we have successfully developed
monodisperse formulations. Refinements will always be an ongoing
part of our R&D and we were delighted to contract through
Medicines Discovery Catapult ("Catapult") our own full-time
Postdoctoral Researcher giving the Company, for the first time, its
own dedicated in lab resource. In the period under review we
undertook initial in vivo studies utilising the monodisperse
formulations resulting from our optimisation work.
Pilot studies indicated that a lower dose of 10ug pOVA bound to
optimised, monodispersed Nuvec(R) gave a better result than a 50ug
dose of the original, agglomerated Nuvec(R) used in studies
previously. A more substantive study was then undertaken to
validate these pilot results and was completed successfully as
recently announced. The success of these results pushed the planned
commencement date for the Evotec in vivo work into the third
quarter as we considered the impact of these results into the scope
of work at Evotec.
In vivo studies
In light of the good results outlined above the Company took the
opportunity to review the scope of the in vivo work planned at
Evotec. In doing so it also assesses other Covid-19 plasmid DNAs
for use with Nuvec(R). Having successfully completed the
amplification of a new Covid-19 plasmid we recently announced a
much improved in vitro performance using the new plasmid with the
optimised Nuvec(R) compared to the previous Covid-19 plasmid used.
The in vivo work has recently commenced and is expected to last up
to eight weeks with an additional two to three weeks analysis.
Cancer and other applications
In addition to the work outlined above we have continued our
work with Nanomerics on the use of Nuvec(R) in respect of the
delivery of TNFalpha in the treatment of cancer which has continued
into this half year. The initial pilot study to assess the
tolerance of different doses has been concluded successfully and
the second pilot study looking at tumour regression will commence
shortly and conclude around the end of this month. After this, the
main study will begin and take a further ten weeks including
analysis at which time the Company will provide an update.
Whilst exploratory work into oral applications continued during
the period, we are now to commence a more substantive three year
study into the oral application of Nuvec(R) in conjunction with the
University of Queensland following the receipt of a grant from the
Australian Government.
Finally, at Catapult we are undertaking studies to analyse how
Nuvec(R) behaves with mRNA both in vitro (binding, dispersion,
stability) and in vivo after subcutaneous injection.
Going Forward
The first six months of the year have seen a real acceleration
in understanding the capabilities of Nuvec(R) following our
optimisation work. This has been coupled by our first MTAs which,
in turn and together with results elsewhere, led us to review the
scope of planned in vivo work pushing some of this work into this
half of the year. Having done this, the coming months are now set
to provide results across several of our work streams including on
in vivo studies with a Covid-19 plasmid DNA and our main cancer
study. In parallel we remain in close contact with our MTA partners
and subject to their work commitments, timelines and results would
hope to progress our working relationship to the next stages.
Intellectual Property
The period under review has seen good progress in respect of the
granting of patent with notifications of intention to grant from
the European, Australian and Japanese patent offices with dialogue
continuing in other jurisdictions.
We have also been advised by the European Patent Office of its
intention to grant a divisional patent in respect of composition,
particulate materials and methods for making particulate materials
further strengthening the IP position around Nuvec(R).
Outlook and strategy
Our strategy remains the same as it always has and that is to
generate sufficient proof of concept data with a view to attracting
large pharma and biotech partners to enter into collaborations to
explore using Nuvec(R) as their chosen delivery system. The issues
facing the vaccine market in respect of storage and distribution
are well known following the Coronavirus pandemic be it the need to
store at extreme sub-zero temperatures or the need to use a
proportionately higher dose when storing at refrigeration levels.
Demonstrating suitable efficacy whilst addressing these and other
issues would, we believe, greatly enhance Nuvec(R) as a potential
delivery tool for vaccines in the eyes of collaborators.
With the short-term work programmes likely to provide plenty of
data points over the next three to six months coupled with the
ongoing MTA work we remain cautiously optimistic as we seek to
commercialise Nuvec(R). We continue to be well funded for all
existing work streams and look forward to analysing the results of
studies and sharing them with interested parties.
On behalf of the Board, I would like to thank all of our
shareholders for their continued support and look forward to
providing further updates on our progress.
By order of the Board
John Chiplin
Chairman
N4 Pharma Plc
N4 Pharma Plc and its controlled entities
Condensed Consolidated Interim Statement of Comprehensive Income
(unaudited) for the six months ended 30 June 2021
Six months Six months Twelve months
to 30 June to 30 June to 31 December
2021 2020 2020
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
------------ ------------ ----------------
Expenses
Research and development
costs (602,927) (213,869) (900,410)
General and administration
costs (367,701) (371,197) (664,011)
Operating loss for the
period (970,628) (585,066) (1,564,421)
Finance (expenditure)/income (2,588) 21 (1,963)
Loss for the period before
tax (973,216) (585,045) (1,566,384)
Taxation - 46,657 261,541
Loss for the period after
tax (973,216) (538,388) (1,304,843)
Other comprehensive income -
net of tax - -
Total comprehensive loss
for the period attributable
to equity owners of N4
Pharma Plc (973,216) (538,388) (1,304,843)
================================ ============ ============ ================
Loss per share attributable
to owners of the parent
Weighted average number
of shares:
Basic 181,080,349 113,169,749 136,303,141
Diluted 184,137,774 114,298,028 139,432,226
Basic loss per share (0.54p) (0.48p) (0.96p)
Diluted loss per share (0.53p) (0.47p) (0.94p)
All activities derive from continuing operations.
The notes below form an integral part of these financial
statements.
N4 Pharma Plc and its controlled entities
Condensed Consolidated Interim Statement of Financial Position
(unaudited) for the six months ended 30 June 2021
Notes 30 June 2021 30 June 2020 31 December
2020
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
------------- ------------- -------------
Assets
Current assets
Trade and other receivables 273,097 60,059 270,837
Cash and cash equivalents 2,542,680 2,443,518 3,555,579
2,815,777 2,503,577 3,826,416
Total Assets 2,815,777 2,503,577 3,826,416
------------------------------ ------ ------------- ------------- -------------
Liabilities
Current liabilities
Trade and other payables (74,284) (127,837) (142,484)
Accruals and deferred income (49,043) (20,833) (26,598)
------------------------------ ------ ------------- ------------- -------------
Total assets less current
liabilities 2,692,450 2,354,907 3,657,334
------------------------------ ------ ------------- ------------- -------------
Net Assets 2,692,450 2,354,907 3,657,334
------------------------------ ------ ------------- ------------- -------------
Equity
Share capital 4 8,995,146 8,879,600 8,995,146
Share premium 5 13,945,602 12,007,642 13,945,602
6a
Share option reserve 6b 71,622 47,914 63,290
Reverse acquisition reserve 5 (14,138,244) (14,138,244) (14,138,244)
Merger relief reserve 5 279,347 279,347 279,347
Retained earnings (6,461,023) (4,721,352) (5,487,807)
------------------------------ ------ ------------- ------------- -------------
Total Equity 2,692,450 2,354,907 3,657,334
------------------------------ ------ ------------- ------------- -------------
N4 Pharma Plc and its controlled entities
Condensed Consolidated Interim Statement of Changes in Equity
(unaudited) for the six months ended 30 June 2021
(i) Six months
ended 30 June
2021 -
Unaudited
---------- -------------- ------------- ------------- -------------- ------------ -------------
Share Share Premium Share Option Reverse Merger Relief Retained Total Equity
Capital Reserve Acquisition Reserve Earnings
Reserve
GBP GBP GBP GBP GBP GBP GBP
---------- -------------- ------------- ------------- -------------- ------------ -------------
Balance at 1
January 2021 8,995,146 13,945,602 63,290 (14,138,244) 279,347 (5,487,807) 3,657,334
Total
comprehensive
loss for
the period - - - - - (973,216) (973,216)
Share issue - - - - - - -
Share option
reserve - - 8,332 - - - 8,332
At 30 June
2021 8,995,146 13,945,602 71,622 (14,138,244) 279,347 (6,461,023) 2,692,450
(ii) Six
months ended
30 June
2020 -
Unaudited
---------- -------------- ------------- ------------- -------------- ------------ -------------
Share Share Premium Share Option Reverse Merger Relief Retained Total Equity
Capital Reserve Acquisition Reserve Earnings
Reserve
GBP GBP GBP GBP GBP GBP GBP
---------- -------------- ------------- ------------- -------------- ------------ -------------
Balance at 1
January 2020 8,676,675 10,327,258 25,266 (14,138,244) 279,347 (4,182,964) 987,338
Total
comprehensive
loss for
the period - - - - - (538,388) (538,388)
Share issue 202,925 1,704,570 - - - - 1,907,495
Share option
reserve - (24,186) 22,648 - - - (1,538)
At 30 June
2020 8,879,600 12,007,642 47,914 (14,138,244) 279,347 (4,721,352) 2,354,907
N4 Pharma Plc and its controlled entities
Condensed Consolidated Interim Statement of Changes in Equity
(unaudited) for the six months ended 30 June 2021 (continued)
(iii) Twelve
months ended
31 December
2020 - Audited
---------- -------------- ------------- ------------- -------------- ------------ -------------
Share Share Premium Share Option Reverse Merger Relief Retained Total Equity
Capital Reserve Acquisition Reserve Earnings
Reserve
GBP GBP GBP GBP GBP GBP GBP
---------- -------------- ------------- ------------- -------------- ------------ -------------
Balance at 1
January 2020 8,676,675 10,327,258 25,266 (14,138,244) 279,347 (4,182,964) 987,338
Total
comprehensive
loss for
the year - - - - - (1,304,843) (1,304,843)
Share issue 318,471 3,618,344 - - - - 3,936,815
Share option
reserve - - 38,024 - - - 38,024
At 31 December
2020 8,995,146 13,945,602 63,290 (14,138,244) 279,347 (5,487,807) 3,657,334
The notes below form an integral part of these financial
statements.
N4 Pharma Plc and its controlled entities
Condensed Consolidated Interim Statement of Cash Flows
(unaudited) for the six months ended 30 June 2021
Six months Six months Twelve months
to 30 June to 30 June to 31 December
2021 2020 2020
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
------------------------------------ ------------ ------------ ----------------
Operating activities
Loss before tax (973,216) (585,045) (1,566,384)
Finance expenditure/(income) 2,588 (21) 1,963
Share based payments to employees 8,332 (1,538) 3,977
Operating loss before changes
in working capital (962,296) (586,604) (1,560,444)
Movements in working capital:
(Increase)/decrease in trade
and other receivables (2,260) 39,210 (30,534)
(Decrease)/increase in trade
and other payables
payables (45,755) 70,987 91,399
Taxation - 46,657 120,507
Cash used in operations (1,010,311) (429,750) (1,379,072)
------------------------------------- ------------ ------------ ----------------
Net cash flows used in operating
activities (1,010,311) (429,750) (1,379,072)
------------------------------------- ------------ ------------ ----------------
Financing activities
Finance (expenditure)/income (2,588) 21 (1,963)
Net proceeds of ordinary share
issue - 1,907,495 3,970,862
Net cash flows (used in)/from
financing activities (2,588) 1,907,516 3,968,899
------------------------------------- ------------ ------------ ----------------
Net (decrease)/increase in cash
and cash equivalents (1,012,899) 1,477,766 2,589,827
Cash and cash equivalents at
beginning of the period
the period/year 3,555,579 965,752 965,752
Cash and cash equivalents at
30 June /
31 December 2,542,680 2,443,518 3,555,579
The notes below form an integral part of these
financial statements.
N4 Pharma Plc and its controlled entities
Notes to the condensed interim financial statements for the six
months ended 30 June 2021
1. Corporate Information
N4 Pharma Plc (the "Company") is the holding company for N4
Pharma UK Limited ("N4 UK"), and together form the group (the
"Group"). N4 UK is a specialist pharmaceutical company engaged in
the development of mesoparticulate silica delivery systems to
improve the cellular delivery and potency of vaccines. The nature
of the business is not deemed to be impacted by seasonal
fluctuations and as such performance is expected to be
consistent.
The Company is domiciled in England and Wales and was
incorporated and registered in England and Wales on 6 July 1979 as
a public limited company and its shares are admitted to trading on
AIM (LSE: N4P). The Company's registered office is located at 6th
Floor, 60 Gracechurch Street, London, EC3V 0HR.
2. Accounting Policies
Adoption of New and Revised International Financial Reporting
Standards
The standards and interpretations that are issued, but not yet
effective, up to the date of the issuance of the consolidated
interim financial statements are disclosed below. The Group intends
to adopt these standards, if applicable, when they become
effective.
Title As Issued by the IASB, mandatory
for accounting periods starting
Amendments to IAS 1: Classification Accounting periods beginning
of Liabilities as Current or on or after 1 January 2023
Non-Current
---------------------------------
Amendments to IFRS 3: Reference Accounting periods beginning
to the Conceptual Framework on or after 1 January 2022
---------------------------------
Amendments to IAS 16: Property Accounting periods beginning
Plant and Equipment (Proceeds on or after 1 January 2022
before intended use)
---------------------------------
Amendments to IAS 37: Onerous Accounting periods beginning
Contracts (Cost of fulfilling on or after 1 January 2022
a contract)
---------------------------------
Annual improvements to IFRS Accounting periods beginning
Standards 2018-2020 on or after 1 January 2022
---------------------------------
IFRS 17 - Insurance Contracts Accounting periods beginning
on or after 1 January 2023
---------------------------------
Basis of Preparation:
The Group's condensed consolidated interim financial statements,
have been prepared in accordance with International Accounting
Standard ("IAS") 34, "Interim Financial Reporting".
The annual consolidated financial statements for the year ended
31 December 2020 were prepared in accordance with International
Financial Reporting Standards ("IFRS") as adopted by the European
Union.
The condensed consolidated interim financial information for the
six months ended 30 June 2021 are unaudited. In the opinion of the
Directors, the condensed consolidated interim financial information
presents fairly the financial position, and results from operations
and cash flows for the period.
These condensed consolidated interim financial statements been
prepared on the basis of accounting principles applicable to a
going concern. The Directors consider that the Group will have
access to adequate resources, to meet the operational requirements
for at least 12 months from the date of approval of these condensed
consolidated interim financial statements. For this reason, they
continue to adopt the going concern basis in preparing the
condensed consolidated interim financial statements.
N4 Pharma Plc and its controlled entities
Notes to the condensed consolidated interim financial statements
for the six months ended 30 June 2021
2. Accounting policies (continued)
Basis of Preparation: (continued)
The financial statements are presented in Sterling, which is the
Group's functional currency as the UK is the primary environment in
which it operates.
Basis of Consolidation:
These condensed consolidated interim financial statements have
been prepared in accordance with IFRS 2, as a result of the
consolidation of the Company and N4 UK, constituting a reverse
takeover transaction, for the comparative six month period ended 30
June 2020 and the comparative 12 month period to 31 December 2020
and the current six month period ended 30 June 2021.
Significant Accounting Policies:
The condensed consolidated interim financial statements have
been prepared under the historical cost convention, as modified for
the fair value of options and warrants, in accordance with
International Financial Reporting Standards ('IFRS') as adopted by
the European Union.
All accounting policies are consistent with those applied in the
Annual Report and there have been no amendments or changes in
accounting policies during the period.
Segmental reporting:
The Group operated in one business segment, that of the
development and commercialisation of medicines via its delivery
system called Nuvec(R). No revenue has yet been generated by any of
the work undertaken by the Group.
The Directors consider that there are no identifiable business
segments that are subject to risks and returns different to the
core business. The information reported to the Directors, for the
purposes of resource allocation and assessment of performance, is
based wholly on the overall activities of the Group.
Seasonality
The nature of the business is not deemed to be impacted by
seasonal fluctuations and as such performance is expected to be
consistent.
3. Critical Accounting Judgements and Estimates
The preparation of the condensed consolidated interim financial
statements in conformity with IFRS requires management to make
certain estimates, assumptions and judgements that affect the
application of accounting policies and the reported amounts of
assets and liabilities and the reported amounts of income and
expenses during the reporting period.
Estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised in the
period in which the estimates are revised and in any future periods
affected.
In the process of applying the Group's accounting policies,
management has decided the following estimates and assumptions are
material to the carrying amounts of assets and liabilities
recognised in the condensed consolidated interim financial
statements.
N4 Pharma Plc and its controlled entities
Notes to the condensed consolidated interim financial statements
for the six months ended 30 June 2021
4. Share Capital
Allotted, called up and 30 June 2021 30 June 2020 31 Dec 2020
fully paid (Unaudited) (Unaudited) (Audited)
GBP GBP GBP
181,080,349 Ordinary Shares
of 0.4p each (30 June 2020:
152,193,787 Ordinary shares
of 0.4p each 31 December
2020: 181,080,349 Ordinary
Shares of 0.4p each) 724,321 608,775 (restated) 724,321
137,674,431 Deferred Shares
of 4p each (30 June 2020
and 31 December 2020: 137,674,431
Deferred shares of 4p each) 5,506,977 5,506,977 5,506,977
279,176,540 Deferred Shares
of 0.099p each (30 June
2020 and 31 December 2020:
279,176,540 Deferred shares
of 0.099p each) 2,763,848 2,763,848 2,763,848
8,995,146 8,879,600 8,995,146
============= =================== ============
All ordinary shares rank equally in all respects, including for
dividends, shareholder attendance and voting rights at meetings, on
a return of capital and in a winding-up.
The 137,674,431 deferred shares of 4p, have no right to
dividends nor do the holders thereof have the right to receive
notice of or to attend or vote at any general meeting of the
Company. On a return of capital or on a winding up of the Company,
the holders of the deferred shares shall only be entitled to
receive the amount paid up on such shares after the holders of the
ordinary shares have received the sum of GBP1,000,000 for each
ordinary share held by them.
The value for the ordinary shares issued for the period ending
30 June 2020 has been restated due to an error in the allocation of
funds raised during the period between the share capital and the
share premium accounts.
An amount of GBP1,826,325 has been reallocated to the share
premium account resulting in a revised share capital value of
GBP8,879,600 and share premium value of GBP12,007,642.
This correction has no impact on the basic or diluted earnings
per share or the net asset value of the Group.
5. Reserves
The share premium account represents the amount received on the
issue of ordinary shares by the Company in excess
of their nominal value and issue costs and is
non-distributable.
The merger relief reserve arose on the Company's acquisition of
N4 UK and consists of both the consideration shares and deferred
consideration amounting to GBP279,347. There is no legal share
premium on the shares issued as consideration as section 612 of the
Companies Act 2006, which deals with merger relief, applies in
respect of the acquisition.
The reverse acquisition reserve arises due to the elimination of
the Company's investment in N4 UK. Since the shareholder in N4 UK
became a shareholder of the Company, the acquisition is accounted
for as though the legal acquiree (N4 UK) is the accounting
acquirer.
N4 Pharma Plc and its controlled entities
Notes to the condensed consolidated interim financial statements
for the six months ended 30 June 2021
6. Share-based Payments and Share Option Reserve
a) Options
The Company has the ability to issue options to Directors to
compensate them for services rendered and incentivise them to add
value to the Group's longer-term share value. Equity settled
share-based payments are measured at fair value at the date of
grant. The fair value determined is charged to the Comprehensive
Income Statement on a straight-line basis over the vesting period
based on the Group's estimate of the number of shares that will
vest.
Cancellations of equity instruments are treated as an
acceleration of the vesting period and any outstanding charge is
recognised in full immediately.
Fair value is measured using a Black Scholes pricing model. The
key assumptions used in the model have been adjusted based on
management's best estimate for the effects of non-transferability,
exercise restrictions and behavioral considerations. The inputs
into model were as follows:
2017 Options 2018 Options 2019 Options 2020 Options
Share price 6.375p 6.6p 3.55p 4.8p
Exercise price 7p 6.6p 3.55p 4.8p
Expected volatility 27.2% 45.2% 37.4% 29.9%
Expected option life 3 years 6.5 years 6.5 years 6.5 years
Risk free rate 4.75% 5.00% 5.00% 5.00%
As at 30 June 2021, there were 7,046,513 (30 June 2020:
8,396,513, 31 December 2020: 7,046,513) options in existence over
ordinary shares of the Company.
Ordinary
Name Date of Grant shares under Lapse Date Exercise
option Price GBP
2015 Options
Gavin Burnell 14.10.15 1,351,210 14.10.25 0.0280
Luke Cairns 14.10.15 675,302 14.10.25 0.0280
2017 Options
Luke Cairns 03.05.17 717,143 03.05.27 0.0700
David Templeton 03.05.17 717,143 03.05.27 0.0700
Paul Titley 03.05.17 717,143 03.05.27 0.0700
2019 Options
John Chiplin 21.05.19 717,143 21.05.29 0.0355
Christopher Britten 21.05.19 717,143 21.05.29 0.0355
2020 Options
David Templeton 18.05.20 717,143 18.05.30 0.0480
Luke Cairns 18.05.20 717,143 18.05.30 0.0480
Total options 7,046,513
--------------
Each option entitles the holder to subscribe for one ordinary
share in N4 Pharma Plc. Options do not confer any voting rights on
the holder.
N4 Pharma Plc and its controlled entities
Notes to the condensed consolidated interim financial statements
for the six months ended 30 June 2021
6. Share-based Payments and Share Option Reserve (continued)
a) Options (continued)
The aggregate fair value of the share options issued is as
follows:
30 June 30 June 31 Dec
2021 (Unaudited) 2020 (Unaudited) 2020 (Unaudited)
GBP GBP GBP
2015 Options 18,493 16,296 18,493
2017 Options 26,884 - 26,884
2019 Options 16,066 2,538 12,270
2020 Options 10,180 321 5,643
------------------ ------------------ ------------------
71,623 19,155 63,290
------------------ ------------------ ------------------
b) Warrants
As at 30 June 2021, the total number of warrants in issue were
nil (30 June 2020:2,536,562, 31 December 2020: nil).
The warrants were exercisable at 4p and entitled holders to
subscribe for new ordinary shares at any time in the period of two
years following the grant of the warrants. The expiry date of the
placing warrants is 20 May 2022.
The fair value of the warrants at 30 June 2021 was nil (30 June
2020: GBP28,759, 31 December 2020: GBPnil).
7. Earnings per Share
Basic earnings per share is calculated by dividing the loss
after tax attributable (excluding the deemed cost of acquisition)
to the equity holders of the Company by the weighted average number
of shares in issue during the period.
Diluted earnings per share is calculated by adjusting the
weighted average number of shares outstanding to assume conversion
of all potential dilutive shares, namely share options and
warrants.
8. Related Party Transactions
During the period to 30 June 2021, the non-executive directors'
fees amounted to GBP25,046 (6 months to 30 June 2020: GBP36,993, 12
months to 31 December 2020: GBP62,044).
During the period to 30 June 2021, the Company charged N4 UK
GBP22,000 in respect of 50 per cent. of the fees paid to Directors
for the services rendered to N4 UK (6 months to 30 June 2020:
GBP18,000, 12 months to 31 December 2020: GBP40,000).
9. Subsequent Events
There are no significant subsequent events that require
adjustment or disclosure in these condensed consolidated interim
financial statements.
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END
IR GPUMUBUPGGQM
(END) Dow Jones Newswires
September 20, 2021 02:00 ET (06:00 GMT)
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