Mymetics Corporation announced shortly after the opening bell today that it has signed a Share Purchase Agreement to acquire 100% of Bestewil Holding B.V., parent company of Virosome Biologicals B.V., from Norwood Immunology Limited (LSE:NIM).
Virosome Biologicals B.V. is focused on developing a proprietary vaccine delivery platform (virosome) as well as intranasal influenza and RSV vaccines. As terms of the Share Purchase Agreement, Antonius Stegmann, co-founder and CSO of Virosome Biologicals B.V, will remain CSO of Virosome Biologicals B.V.
The acquisition will expand Mymetics’ current portfolio of vaccines, adding two collaborations: an Influenza vaccine in a Phase II Human Clinical trial in collaboration with the Solvay Group (NYSE Euronext SOLB.BE), and a Respiratory Syncytial Virus (RSV) vaccine under pre-clinical testing used to treat a major cause of respiratory illness in young children, as well as Bestewil’s Herpes Simplex Virus development.
The closing is anticipated to take place this year on the first of April. The purchase price of EUR7.5 million (US$9.4 million) includes cash of EUR5 million, a secured 36 month 5% convertible and redeemable note of EUR2.5 million, as well as options with a value of approximately US$9.6 million. Conversion will be at the lesser of US$0.80 or the issue price of the shares of common stock that the Corporation plans to issue after the closing date for the purpose of raising the required funds to repay the bridge loan. In the press release, the company detailed further consideration to be paid after completion of the Share Purchase Agreement.
“This second acquisition fits into our corporate strategy; it increases our vaccine portfolio from two to three vaccines, it enhances the virosome delivery methodology, and it strengthens our research and development team,” stated Christian Rochet, CEO, Mymetics Corp. “The enlarged company will have increased research capabilities, an expanded intellectual property portfolio and a strong set of clinical trials in the field of immunology.”