Business Irish

Friday 14 December 2018

Irish company looks to raise over €30m with share placing

Photo: Stock Image
Photo: Stock Image
Ellie Donnelly

Ellie Donnelly

Irish-based global life-sciences investment company Malin has announced plans to raise as much as €31m through a share placing.

The company will place up to 3.5 million new ordinary shares in the capital of the company at a price of €8.88 per share to raise up to €31m.

The placing represents up to 8.2pc of the company's issued share capital prior to the placing.

Proceeds from the placing will enhance Malin's financial flexibility to respond to funding requirements in its existing core investee companies should they arise.

In addition the company will use the funding for general corporate purposes, Malin said in a statement today.

The placing is being undertaken using the company's existing shareholder authorities and is not conditional on any further shareholder approvals.

Davy is acting as the sole bookrunner in respect of the placing.

The placing price of €8.88 is equal to the volume weighted average closing price per Malin ordinary share on the Irish Stock Exchange over the 30 calendar day period up to and including 25 January 2018.

Once issued, the placed shares will be credited as fully paid and will have equal rank with the existing ordinary shares of Malin.

In early 2015 when Malin floated the Ireland Strategic Investment Fund ploughed €50m into it. Almost three years later the taxpayer is down over 10pc on that investment, the company's chief executive has left his position and then come back again, and Malin is now on its third chairman, Gavin McLoughlin wrote in last Sunday’s Sunday Independent.

But since October the stock has turned for the worse, and the initial investors are sitting on a loss.

However, for an early-stage life sciences companies to encounter problems is not that surprising as investments like this are high-risk. If their product is proven to work and gets regulatory approval, they boom. Otherwise, things can get very difficult.

So far it remains to be seen if the State’s €50m punt will pay off.

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