LONDON (Alliance News) - Healthcare firm Integumen PLC said on Friday discussions over its acquisition of Cellulac and due diligence are ongoing, as is the process of raising funds for the transactions.
Shares in Integument are currently suspended.
In April, Integumen said it would acquire Cellulac in a cash and share deal, of which 84% will be shares, and Integumen will raise GBP7.5 million through either an equity placing or debt funding.
The enlarged group would focus on biodegradable plastic ingredients, cosmetics and human grade food supplements, replacing existing Integumen cosmetic packaging with biodegradable plastic materials.
"These drop-in replacements will be focused on existing and near to market products," Integumen said. "Demand for these products is established and an offtake agreement worth up to USD36 million over five years is already in place."
If the acquisition takes place, the enlarged group will conduct a share consolidation and change its name to Cellulac PLC, it said. Cellulac Chief Executive Officer Gerard Brandon and Chief Operations Officer Camillus Glover will hold the same roles in the enlarged company.
