Summit Therapeutics plc (AIM: SUMM, NASDAQ: SMMT), a leader in antibiotic innovation, announces a proposed fundraising (the “Fundraising”) of approximately $50 million through a subscription and placing of new ordinary shares and warrants to existing investors, which is subject to certain shareholder approvals being obtained and certain customary closing conditions being satisfied. The transaction includes proposals to restructure the Company’s board of directors (the “Board”) and to cancel the trading on AIM of the Company’s ordinary shares. The Company’s American Depositary Shares (“ADSs”) will remain listed on the Nasdaq Stock Market (“Nasdaq”) where one ADS represent five ordinary shares.
$50.0 million to be raised through a subscription of 166,157,050 new ordinary shares of one penny each in the Company and the placing of 9,221,400 new ordinary shares of one penny each in the Company at a subscription and placing price of 22.1 pence per new ordinary share.
The proposed AIM Delisting reflects the increasing focus of Summit’s business operations on the United States and, specifically, the Company’s plan to commercialise ridinilazole in the United States with its own specialised sales force that it plans to establish.
Glyn Edwards, Chief Executive Officer of Summit, said:
“Patients need new and better antibiotics. Innovation is required to develop distinctive new drugs that address the resistance crisis without damaging our healthy microbiomes. Summit sees a huge opportunity in the antibiotic space for precision drugs targeting specific bacteria. We have great technology and people at Summit to bring forward potent antibiotics with the potential to deliver better outcomes for patients and healthcare systems.
It is great that Bob Duggan is leading this much-needed investment into Summit that will support progression of our ambitious plans, including developing ridinilazole, our precision antibiotic for the treatment of C. difficile infection. We have the opportunity to show that ridinilazole is superior to vancomycin in sustained cures of C. difficile infection, is able to preserve the microbiome of patients and offers substantial benefits to payors by reducing costly recurrences.”
Singer Capital Markets is acting as Joint Broker to Summit Therapeutics alongside Panmure Gordon.
About Summit Therapeutics
Summit Therapeutics is a leader in antibiotic innovation. Its new mechanism antibiotics are designed to become the new standards of care for the benefit of patients and create value for payors and healthcare providers. It is currently developing new mechanism antibiotics for infections caused by C. difficile, N. Gonorrhoeae and ESKAPE pathogens and is using its proprietary Discuva Platform to expand its pipeline.
Ticker: SUMM (AIM)
Market Cap: £35.31 million*
Website: Click here
*As at 13/12/2019
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