17 November 2010 – placing and acquisition
The company is proposing a placing at 12p per share to raise £7.75m before expenses in order to fund the acquisition of the In Vitro Diagnostics Business of Allergopharma Joachim Ganzer KG, a leading European allergy testing business. This looks to be an interesting deal which will serve shareholders well over the longer term. However, the placing shares will represent 76% of the enlarged company and with the selling price of the shares in the market showing a significant premium to the placing price there may well be limited upside in the near term. For now, HOLD.