REG-ECO Animal Health Group plc, Issue of Equity
Released: 21/12/2009
ECO Animal Health plc
("ECO or the "Company")
Issue of Equity and Acquisition
The Company, is pleased to announce that it has raised £6 million gross of
expenses by way of a placing (the "Placing") and admission of 4,258,314
ordinary shares of 5p ("Placing Shares") each in the capital of the Company at
140 pence per share.
The proceeds of the Placing will be used partly to fund the acquisition of the
outstanding 80% of an associate company in Japan. The Board believes that the
acquisition will strengthen ECO's position in the Japanese market by providing
both greater control over the supply chain and an opportunity to grow sales in
the country where Aivlosin#, its patented macrolide antibiotic, was first
launched. The Board expects the acquisition to be completed within the next few
weeks and further details will be announced at that time.
Part of the proceeds of the Placing will also be used to fund the Aivlosin#
launch and the sales and marketing effort in the USA. ECO expects to receive its
first marketing authorisation for Aivlosin# from the FDA next year.
In addition, some of the proceeds will be used to finance a further joint
venture in China with the manufacturer of Aivlosin#'s active pharmaceutical
ingredient. This joint venture should be operational by the end of 2010 and will
enable ECO to deliver management and cost saving technology inputs.
Application has been made to the London Stock Exchange for the Placing Shares to
be admitted to trading on AIM and it is expected that admission will occur at
8.00 a.m. on 24 December 2009. The Placing Shares will, when issued, rank pari
passu in all respects with the Company's existing ordinary shares.
After admission of the Placing Shares the figure of 51,612,768 million
ordinary shares may be used by shareholders in the Company as the denominator
for the calculations by which they will determine if they are required to notify
their interest in, or a change in their interest in, the share capital of the
Company under the FSA's Disclosure and Transparency Rules.
Contacts:
ECO Animal Health Group plc Peter Lawrence 020 336 6190
Spiro Financial Anthony Spiro 020 8336 6196
Cenkos Securities plc Stephen Keys 020 7397
8926
(Nominated Adviser) Liz Bowman 020
7397 8928
ECO Animal Health Group plc is a leader in the development, registration and
marketing of pharmaceutical products for animals. Our products for these global
growth markets promote well-being. Our financial goals are achieved through the
careful and responsible application of science to generate value for our
shareholders.