Silence Therapeutics PLC Partial Disposal of Arrowhead common shares (2187Y)

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RNS Number : 2187Y

Silence Therapeutics PLC

04 December 2017

Partial Disposal of Arrowhead common shares

4 December 2017

Silence Therapeutics plc, AIM:SLN ("Silence" or "the Company") a leader in the discovery, delivery, and development of novel RNA therapeutics for the treatment of serious diseases with unmet medical need, announces that it has sold part of its holding of common shares in Arrowhead Pharmaceuticals Inc. (NASDAQ: ARWR) ("Arrowhead").

As per an RNS dated 13(th) January 2017, Silence had purchased 6,831,359 common shares of Arrowhead for a total consideration of $11.3 million (GBP9.2 million at an exchange rate of GBP1=$1.234), then representing 9.21% of Arrowhead. At the Company's last balance sheet date (30 June 2017) this shareholding was marked-to-market and valued at GBP8.55 million as an available-for-sale financial asset.

The Company has sold 2,036,046 shares on the open market for $7.5 million (GBP5.6 million). The average purchase price per common share was $1.65 and the average selling price of the 2,036,046 common shares recently sold was $3.68. The profit recorded is therefore $4.1 million, or GBP2.9 million. The Company will use the proceeds from the sale of the common shares to fund the Company's working capital requirements.

Silence has determined it may be advantageous to liquidate portions or all of its holdings of Arrowhead common shares from time to time in an orderly manner consistent with prudent management of its investment.

Ali Mortazavi, Chief Executive Officer of Silence Therapeutics, commented:

"Our balance sheet has been strengthened by the addition of GBP5.6 million in cash received from the partial sale of this stake in Arrowhead. As a biotech company focussed on both our platform and our developing pipeline, we believe that this cash receipt will enable us to maintain our focus as we advance products towards the Clinic.

The Company will invest the funds in low risk cash or cash equivalent investments to safeguard the principal, using financial institutions with a credit rating equivalent to, or above, the main UK clearing banks."

Enquiries:

 
 Silence Therapeutics plc                Tel: +44 (0)20 
  Ali Mortazavi, Chief Executive          3457 6900 
  Officer 
  David Ellam, Chief Financial Officer 
 
 Peel Hunt LLP (Nominated Adviser        Tel: +44 (0)20 
  and Broker)                             7418 8900 
  James Steel/Oliver Jackson 
 Media Enquiries:                         Tel: +44 (0) 
  Optimum Strategic Communications         20 3714 1788 
  Mary Clark/ Eva Haas/ Hollie Vile 
 

Notes to Editors

About Silence Therapeutics plc

Silence Therapeutics develops a new generation of medicines by harnessing the body's natural mechanism of RNA interference, or RNAi, within its cells. Our proprietary technology can selectively inhibit any gene in the genome, specifically silencing the production of disease-causing proteins. Using our enabling delivery systems, we have achieved an additional level of specificity by delivering our therapeutic RNA molecules exclusively to target cells. Silence's proprietary RNA chemistries and delivery systems are designed to improve the stability of our molecules and enhance effective delivery to target cells, providing a powerful modular technology well suited to tackle life-threatening diseases.

This information is provided by RNS

The company news service from the London Stock Exchange

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December 04, 2017 02:00 ET (07:00 GMT)