ProBiotix Health raises £1.025m as it looks at potential flotation
OPTIBIOTIX, A life sciences business that tackles obesity, high cholesterol, diabetes and skin care, said its ProBiotix Health subsidiary has raised £1.025m ahead of potential flotation.
The York-based firm said ProBiotix has made strong progress over the last 18 months and has signed 17 commercial agreements, including three agreements taking its cholesterol reducing Lactobacillus plantarum strain into the high value pharmaceutical drug market.
The group said the proceeds from the raising will be used to provide funding for a potential initial public offering of ProBiotix. This is in line with OptiBiotix’s strategy to form separate divisions, which could in due course become separate legal entities with the potential for a separate public listing.
The firm said that the diversity of IP and commercial relationships across its four divisions reduces shareholder risk whilst offering multiple opportunities
‘ProBiotix Health has made strong progress in the last 18 months.’
for value enhancement. Stephen O’Hara, CEO of OptiBiotix, said: “OptiBiotix probiotic division, ProBiotix Health, has made strong progress in the last 18 months.
“OptiBiotix directors believe that this division has now reached a stage of scientific and commercial maturity where it may be advantageous to explore opportunities for a public listing to exploit the unique window of opportunity created by the narrowing of the interface between pharmacology and nutritional products and create the potential for substantial future value enhancement.”
Analyst Mark Brewer, at FinnCap, said: “In line with OptiBiotix’s strategy to develop its technology platforms into separate standalone businesses, which can then be separately listed, ProBiotix has raised £1.025m, which follows its formation as a wholly owned subsidiary in September.
“This is in line with the IPO of SkinBiotherapeutics in April 2017, in which OptiBiotix retains a 41.9 per cent shareholding, currently valued at around £7m, having originally invested £0.25m in March 2016.”
OptiBiotix has subscribed for £250,000 of convertible loan notes. Mr O’Hara has subscribed for £25,000 and certain close family members of Mr O’Hara have subscribed for £265,000. Director Per Rehne has subscribed for £25,000.