Horizon Discovery Group plc Raises £68.6 million
Pioneer of Translational Genomics to be admitted to AIM with a Market Capitalisation of £120.5 million
Horizon Discovery Group plc ("Horizon" or "the Company"), the revenue generating life science company supplying research tools to organisations engaged in genomics research and the development of personalised medicines, is to be admitted to AIM with a market capitalisation of £120.5 million.
The placing, conducted by Panmure Gordon (UK) Limited, has raised £68.6 million from institutional investors comprising £40 million for the Company before expenses and the sale of £28.6 million of Sale Shares, at a price of 180p per share.
Shares in Horizon are expected to start trading on Thursday 27th March, under the ticker symbol "HZD".
Dr Darrin M Disley, Chief Executive Officer of Horizon Discovery Group plc, commented: "Horizon's aim is to become a global market-leader in the provision of Life Science research tools that enable the elucidation of the genetic basis of disease and the development of personalised medicines that deliver better outcomes for patients. The Company builds upon a strong commercial performance since inception and the listing of our shares is expected to unlock and deliver significant value to all shareholders moving forward.
"We are very excited by the enthusiasm shown by over 60 incoming investors and the significant oversubscription for the placing at the top of our target valuation range. We believe this demonstrates a strong understanding of the value of our technology platform and support of its flexible deployment via a powerful business model that combines the sale of differentiated products and services that drive revenue growth and leveraged R&D programs generating future milestones and product royalties.
"We are looking forward to joining the AIM market and we wish to thank our investors for their continued and fresh support."
Admission Statistics
The Business
Horizon Discovery Group is a revenue generating business, centred around the proprietary GENESISTM gene editing and X MANTM cell line platforms
These platforms enable the understanding of the genetic basis of disease, the manipulation of genomes and the creation of genetically-defined human cell lines or "patients in a test tube"
This technology is becoming widely used in genomics research and the development of personalised medicines targeted to specific genetic drivers of diseases like cancer
Based in Cambridge (UK) Horizon operates through three commercial units: contract research services, cell line and reagent products and leveraged research and development
Blue chip customer base including AstraZeneca, Bayer, Boehringer Ingelheim, Genentech, Jannsen Pharmaceuticals, Merck & Co., Novartis Institutes of Biomedical Research and Takeda, with 353 unique customers in 2013
£6.6 million revenues generated in 2013, up > 70% on 2012 (126% CAGR from 2007 to 2013)
Leveraged research and development potential future milestones payments currently totalling approximately £120 million plus royalties on tiered product sales
Use of Proceeds
Increase awareness of the Company's services, products and leveraged R&D programmes in their target markets;
Expand the sales and distribution channels for the Company's services, products and leveraged R&D programmes;
Expand the number of cell line and reagent products available for sale via increased product development and the in-license of new product ranges from third parties;
Increase the pipeline of leveraged R&D opportunities delivering downstream milestone and product royalties;
Expand the intellectual property portfolio, via licence or selective acquisition; and
Acquire additional sales channels and other capabilities that deliver an expanded commercial offering and strategic geographical footprint
For further information please contact:
Consilium Strategic Communications
Amber Bielecka / Mary-Jane Elliott / Jessica Hodgson / Matthew Neal
+44 207 920 2352
For trade and regional media enquiries for Horizon:
Zyme Communications
Katie Odgaard
+44 (0)7787 502 947
Panmure Gordon (UK) Limited
As Nominated Adviser and Broker
Corporate Finance
Freddy Crossley / Grishma Patel / Duncan Monteith / Fred Walsh
Broking
Tom Salvesen/ Adam Pollock
Tel: +44 20 7886 2500
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This announcement is for information purposes only and does not constitute or form part of any offer or invitation to underwrite, sell or issue, or any solicitation of any offer to purchase or subscribe for, any ordinary shares or other securities in the capital of the Company, nor shall it (or any part of it), or the fact of its distribution, form the basis of, or be relied on in connection with or act as any inducement to enter into, any contract whatsoever relating to any ordinary shares or securities.
Panmure Gordon & Co. is regulated by the Financial Conduct Authority and is acting exclusively for the Company and no one else in connection with the Placing and Admission and will not regard any other person (whether or not a recipient of this announcement) as a client in relation to the Placing or Admission and will not be responsible to anyone other than the Company for providing the protections afforded to its clients or for providing advice in relation to the Placing, Admission or any transaction, arrangements or other matters referred to in this announcement.
The Placing and the distribution of this announcement and other information in connection with the Placing in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.
The Ordinary Shares have not been and will not be registered under the United States Securities Act 1933 (as amended) nor under the applicable securities laws of the United States of America or any province or territory of Canada, Australia, the Republic of South Africa or Japan, nor in any country or territory where to do so may contravene local securities laws or regulations and will not be made to any national, resident or citizen of the United States of America, Canada, Australia, the Republic of South Africa or Japan. No reliance may or should be placed by any person for any purpose whatsoever on the information contained in this announcement or on its completeness, accuracy or fairness. The information in this announcement is subject to change. Investments to which this announcement relates may expose an investor to a significant risk of losing all of the amount invested. This announcement does not constitute a recommendation concerning the Placing. The value of shares can decrease as well as increase. Potential investors should consult a professional advisor as to the suitability of the Placing for the person concerned.
Forward Looking Statements
Certain statements contained within the announcement are forward looking statements and are based on current expectations, estimates and projections about the potential returns of the Group and industry and markets in which the Group operates, the Directors' beliefs and assumptions made by the Directors. Words such as "expects", "anticipates", "should", "intends", "plans", "believes", "seeks", "estimates", "projects", "pipeline" and variations of such words and similar expressions are intended to identify such forward looking statements and expectations. These statements are not guarantees of future performance or the ability to identify and consummate investments and involve certain risks, uncertainties, outcomes of negotiations and due diligence and assumptions that are difficult to predict, qualify or quantify. Therefore, actual outcomes and results may differ materially from what is expressed in such forward looking statements or expectations. Among the factors that could cause actual results to differ materially are: the general economic climate, competition, interest rate levels, loss of key personnel, the result of legal and commercial due diligence, the availability of financing on acceptable terms and changes in the legal or regulatory environment.
These forward-looking statements speak only as of the date of this announcement. The Group expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Group's expectations with regard thereto, any new information or any change in events, conditions or circumstances on which any such statements are based, unless required to do so by law or any appropriate regulatory authority.