Promore carries out reverse acquisition and changes its operations
Solna-based Promore Pharma has been in voluntary liquidation since mid-October. The liquidator now seems to have found a solution, which means that the company will carry out a reverse acquisiton of the medtech company PMD Device Solutions. In the proposed transaction, Promore’s original operations will be discontinued and replaced by PMD’s.
Promore Pharma has had a tough 2023 after results this spring with the drug candidate ensereptide, which did not live up to expectations. The disappointing results, combined with the situation on the stock market, have led to a sharp drop in the share price, which has made it difficult to continue financing the development.
This, in turn, has necessitated a decision regarding voluntary liquidation, which came into force mid-October. Since then the liquidator has been looking for a solution for the company, with the aim of securing some sort of value for the current shareholders.
Carries out a reverse takeover
Such a solution appears to come in the form of a proposed reverse takeover of the medtech company PMD Device Solutions. PMD focuses on the development and sale of products for respiratory rate monitoring. Their main product, RespiraSense, is designed for continuous and motion-tolerant respiratory rate monitoring.
The product is currently used in 25 hospitals in the UK and Ireland and PMD aims to increase its market presence, not only in the UK but also in Germany and the US. The company consists of over 20 people and has annual recurring revenues of more than 32 million SEK.
PMC raises 26.5 million SEK
According to the proposed transaction, Promore acquires all shares in PMD, where payment will be made through a new share issue worth 125 million SEK. This so-called non-cash issue means that the current shareholders of Promore will own approximately 2.3 per cent of the combined company, while PMD’s shareholders will control approximately 97.7 per cent.
In connection with this, PMD intends to carry out a directed share issue at a value of approximately 26.5 million SEK.
Major shareholders will vote in favour of the deal
In order for the transaction to go through, Nasdaq Stockholm must give its approval, and it must also be approved at an extraordinary general meeting in Promore, which is planned for 29 December 2023. The two largest shareholders in Promore, who together hold almost half of the votes, have already committed to supporting the transaction.
If the transaction goes ahead, Promore will change its name to PMD Device Solutions and continue PMD’s operations, while Promore’s existing operations will be discontinued.
Promore Pharma’s stock reacted strongly to the announcement and was traded up several hundred per cent at a high volume on Wednesday. The high point was set at 0.325 SEK per share, after which it calmed down somewhat during the afternoon.
The content of BioStock’s news and analyses is independent but the work of BioStock is to a certain degree financed by life science companies. The above article concerns a company from which BioStock has received financing.
