Tiziana Pharma plans listing via reverse takeover

Tiziana Pharma, a recently-established UK biotech company that has licensed technology for a potential breast cancer drug from Cardiff University, Wales, is set to stage a reverse takeover of Alexander David Investments (AIM: ADI), an AIM-listed shell company, and plans to change its name to Tiziana Life Sciences.

ADI says that it has conditionally agreed terms in respect of the proposed acquisition of the entire issued share capital of Tiziana Pharma, for a consideration of £7.5 million ($12.5 million) is to be satisfied by the issue of New Ordinary Shares at a price of £0.12 per share, which values the existing share capital at £0.24 million, representing a 53% discount to the company’s share price on December 19, 2013, the date on which trading was temporarily suspended. The company has raised £2.0 million (before expenses) by means of the Placing which will be used to develop the intellectual property rights in Tiziana Pharma and for general working capital purposes.

The Acquisition, if completed, is of sufficient size to constitute a reverse takeover under the AIM Rules and therefore is subject to the approval of shareholders at a general meeting., says ADI.