Malin to raise €31m with share placing
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 3.5m new ordinary shares in the capital of the company at a price of €8.88 per share.
Proceeds from the placing will enhance Malin's financial flexibility to respond to funding requirements in its existing core investee companies, should they arise, Malin said in a statement yesterday.
In addition, the company will use the funding for general corporate purposes. The placing represents up to 8.2pc of the company's issued share capital prior to the placing.
The placing price 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 January 25, 2018. The company's share prices was unchanged following the announcement.
Last year Malin took a 33pc stake in UK biopharma firm Wren Therapeutics. In addition, the company also took a 32pc stake in a Yale University spin-off, Artizan Biosciences, in 2017.
In early 2015, when Malin floated, the Ireland Strategic Investment Fund invested €50m in 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.
Since October last year 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.