(Alliance News) - Arix Bioscience PLC on Friday said it will invest a further USD1.9 million in a USD51.9 million private share placing being carried out by portfolio company Iterum Therapeutics.
Iterum has raised the funds for the clinical development of sulopenem as well as for working capital and general corporate purposes.
Sulopenem is Iterum's lead compound and novel antibiotic for the treatment of multi-drug resistant infections.
The investment firm said the private placing - which commenced on Thursday - is expected to close within five business days of the execution date.
Iterum will sell USD51.9 million of its 6.500% exchangeable senior subordinated notes due 2025, and USD100,000 of its limited recourse royalty-linked senior subordinated notes. The units will be sold at a price of USD1,000 each at an initial exchange rate of 1,000 shares per USD1,000 principal amount of exchangeable notes.
Prior to this investment, Arix held a 7.3% stake in Iterum, amounting to 1.1 million shares valued at USD4.9 million.
Arix shares were flat at 96.50 pence each on Friday afternoon in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
