GREAT NEWS!!!
Oxford Biomedica announces strategic investment by Novo Holdings A/S
Oxford, UK - 28 May 2019: Oxford Biomedica plc (LSE:OXB) ("OXB" or "the Group"), a leading gene and cell therapy group, today announces that Novo Holdings A/S ("Novo Holdings"), has agreed to invest up to £53.5 million in the Group in return for new ordinary shares representing up to 10.1% of the outstanding shares after the capital increase (the "Transaction").
The proceeds from the Transaction will be used to repay the existing debt facility with Oaktree Capital Management in full and to further develop the LentiVector® platform and the proprietary product portfolio. The price per new ordinary share to be paid by Novo Holdings is equal to the closing market price on Friday, 24 May 2019. For more information, see section "About the Transaction" below.
OXB is at the centre of the rapidly emerging gene and cell therapy sector by which life-changing and curative treatment has become a therapeutic reality. Leveraging its world-leading LentiVector® platform, OXB benefits from a dual strategy to support its partners in the development and commercialisation of their gene and cell therapy programmes while also pursuing the development of a proprietary product portfolio for later out-licensing. This strategy has resulted in a number of partnerships, including with Novartis and Sanofi, as well as the out-licensing of OXB-102 (AXO-Lenti-PD) to Axovant Gene Therapies.
The investment from Novo Holdings will enable OXB to take advantage of its leading position and further exploit the growth opportunities in the sector.
John Dawson, Chief Executive Officer of Oxford Biomedica, commented:
"We are delighted that Novo Holdings has become a shareholder in Oxford Biomedica. Novo Holdings is a well-known and highly regarded long-term investor with significant expertise in working with innovative, life sciences businesses to unlock their growth potential. This experience will be a great asset far beyond the financial commitment they have made to the Group and their collaboration and support will be highly valuable as we seek to scale up our operations both on the platform and on the proprietary product portfolio."
Robert Ghenchev, Director at Novo Holdings, added:
"Oxford Biomedica is a global scientific and manufacturing leader within lentiviral vectors, one of the most established and well-validated technologies for delivering gene and cell therapies. This investment underscores Novo Holdings' commitment to supporting companies developing cutting-edge science that makes a real difference to patients and society. We are genuinely excited about this investment and look forward to working with Oxford Biomedica and supporting the Group going forward."
About the Transaction
Under the Subscription Agreement entered into by Novo Holdings and OXB in relation to the Transaction, Novo Holdings has agreed to subscribe for 6,568,024 new ordinary shares in OXB (the "Subscription Shares") at a price of £6.90 per share (the "Subscription Price"). The Subscription Agreement also provides an option for Novo Holdings to subscribe for up to a further 1,181,976 new ordinary shares in OXB (the "Further Shares") at the Subscription Price by the 30 June 2019 (the "Subscription Option"). Exercise of the Subscription Option in full would increase Novo Holdings' ownership to 10.1% of the Company following the issuance of the Subscription Shares and the Further Shares. Under the Subscription Agreement, Novo Holdings is granted the right to appoint a non-executive director to the Board of OXB following the issuance of the Subscription Shares.
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