Date: 2012-04-04
Type of information: Private placement
Company: Summit Corporation (UK)
Investors:
Amount: £5.0 million before expenses (€6.4 million before expenses)
Funding type: private placement of new ordinary shares
The Placing is conditional upon the Resolutions having passed at the General Meeting to be held on 20 April. The New Ordinary Shares will, when issued and admission is expected to take place and dealing in the New Ordinary Shares on AIM on 24 April 2012.
Planned used: Summit has cash resources which, based on the current levels of cash expenditure, are expected to last into Q3 2012. As a consequence, the Group requires additional finance to enable its strategy for creating shareholder value to be implemented in an optimal manner.
Others: Summit, a UK drug discovery company, has announced a share issue to raise £5.0 million (before expenses) through the issue of 166,666,670 new Ordinary Shares by way of a Placing at 3.0 pence per Ordinary Share to certain institutional investors and Directors.
The proceeds of the Placing will provide Summit with sufficient cash resources to fund the business into Q3 2013. If the Resolutions are not passed by Shareholders at the General Meeting, the Placing would be unable to proceed. In this situation, the Company would not have cash resources to maintain current operations beyond the third quarter of 2012 and would need to consider alternative strategic options that the Directors believe would not be in the best interests of stakeholders. These options could include raising finance from alternative sources, disposals of intellectual property assets, reducing costs through redundancies or other means or a sale of the Company at a price which the Directors believe would not recognise the potential longterm value of the business. Any one, or all, of these remedial actions could have a significant adverse or dilutive effect on the interests of Shareholders and in the valuation of the Company. In addition, should the Company or its subsidiaries be forced to make an arrangement with creditors or suffer some other insolvent event then title in the most advanced programmes, C. difficile and/or Duchenne Muscular Dystrophy, could be lost.
Placing proceeds of £4.6m (net of costs) will enable the Company to benefit from the results of the Phase I clinical study of SMT C1100 for the treatment of Duchenne Muscular Dystrophy programme. If the Phase I is successful then the Company would seek to commercialise the interest in the programme through collaboration with other companies to progress SMT C1100 through further clinical trials in return for an up-front payment, development and regulatory milestones and sales royalties. Headline data from this study are anticipated in Q3 2012.
The Company intends to develop SMT 19969 through a Phase I study as a treatment for C. difficile infection (‘CDI’). At the end of this study, which is anticipated to be in H1 2013, the Company may seek partners to further develop the product in return for an up-front payment, development and regulatory milestones and sales royalties.
The Company further intends to investigate the activity of compounds derived from its Seglin™ technology platform against a number of promising targets. This includes advancing its programme targeting the enzyme OGA, which is implicated in the progression of Alzheimer’s disease and related neurodegenerative diseases, through to in vivo proof concept. Reaching this stage is expected to increase the potential of being able to secure a licensing partner to continue the development of the programme. In addition, new programmes will be developed from the Seglin platform in targeting infectious and rare diseases to build on Summit established expertise in these areas.
*On April 20, 2012, Summit announced that at a General Meeting of the Company held earlier today, the resolutions, as set out in the Notice of General Meeting annexed to the circular to shareholders dated 4 April 2012, were duly passed, thereby enabling the proposed fundraising announced on 4 April 2012 to proceed.
Therapeutic area: Rare diseases - Neuromuscular diseases - Infectious diseases
