Invex to acquire Rekover Therapeutics in deal
Key points
- Invex Therapeutics agreed to acquire 100% of New Zealand biotech firm Rekover Therapeutics.
- The deal is funded via scrip consideration and a two-tranche placement to raise $10 million.
- Capital raised will support the Phase 2a REVIVE study for multiple sclerosis and existing Exenatide assets.
Invex Therapeutics (ASX:IXC) has entered into a binding agreement to acquire 100% of New Zealand biotechnology firm Rekover Therapeutics through an all-scrip deal.
The acquisition requires no cash consideration and relies entirely on equity issues.
The consideration consists of 45 million ordinary shares and up to 91.3 million performance rights across three distinct milestone classes.
Invex will also raise $10 million through a preliminary placement of $900,000 and a conditional placement of $9.1 million at $0.08 per share.
Following the announcement, the Invex Therapeutics share price was unchanged at $0.12.
Rekover Therapeutics focuses on repurposing nalfurafine to treat demyelinating diseases such as chronic optic neuropathy in multiple sclerosis patients.
Completion of the deal remains subject to shareholder approval, with a general meeting expected in late November or early December.
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