Concurrent with Tris Pharma deal, Vernalis plans to privately raise £65.9mm

UK drug development company Vernalis PLC plans to net £65.9mm ($104.3mm) by selling a total of 342.5mm new ordinary shares at £0.20 (a 7% premium) to existing backers--including directors and Invesco Asset Management--and new institutional investors. The fundraising is split into a firm placing of 50mm shares, and a placing and open offer of 292.5mm shares (the placing and open offer shares may be purchased by qualifying stockholders on the basis of 47 new shares for every 16 existing shares held). Invesco anticipates buying 125.5mm shares; it already owns a 42.9% stake. (Normally if Invesco’s holdings were to go above 42.9%, it would be required to acquire the remaining shares of Vernalis, but the company is waiving this obligation.) Approximately 80% of the proceeds will be used to build a US sales force to promote up to six extended-release liquid formulations of existing cough/cold medicines to be developed through a deal between Vernalis and Tris Pharma, announced the same day. The remaining money will fund future in-licensing agreements for late-stage candidates.