ImmuPharma PLC said on Monday it had extended its warrants in Incanthera PLC for the second time, valid now until March 31, 2025.
The London-based specialist drug discovery and development company paid a £75,000 cash consideration to obtain the extension with Incanthera, a Manchester, England-based developer of technologies in dermatology and oncology. ImmuPharma believes Incanthera’s investment case to be ‘robust’, with the potential for a further accretive share price.
ImmuPharma entered into the warrant instrument with Incanthera in February 2020 and its warrants have an exercise price of 9.50 pence per share. In August this year, Incanthera had agreed to extend the warrant instrument by 12 months to September 6, 2024.
ImmuPharma currently holds no shares in Incanthera, having sold its previous holding of around 9.9 million shares in June for 15.00 pence per share. This realised proceeds of around £1.5 million for the company.
Tim McCarthy, the chief executive officer for ImmuPharma and the chair for both ImmuPharma and Incanthera, holds around 3.9 million shares in Incanthera - 3.4% of Incanthera’s shared capital.
Chief Operating Officer Tim Franklin said: ‘After careful consideration, we believe an investment of £75,000, to secure extended optionality associated with the warrant extension, not only retains the nominal ’in the money’ value in the warrants, but also allows us to benefit potentially from any further accretion in Incanthera’s share price as they meet key milestones over the next period.’
Shares in ImmuPharma were down 2.6% at 1.50p each in London on Monday afternoon.
Shares in Incanthera were flat at 27.00 pence each in London on Monday afternoon.
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