Mereo BioPharma to Trade on AIM -- Update

(Adds comment from CEO.)

By Jana Simmons

LONDON--Mereo BioPharma Group PLC, a U.K.-based biopharmaceutical company, on Monday announced plans to start trading on AIM this week and said it has raised an additional 14.8 million pounds ($21.5 million).

The company raised GBP11.35 million through a private placement of ordinary shares at a price of GBP2.21 each and received a cash investment by existing shareholder Novartis by way of a convertible loan for GBP3.46 million.

Mereo, which plans to buy clinical-stage pharmaceutical product candidates from large pharmaceutical companies, said it expects its shares to start trading on AIM on June 9. The company already acquired three product candidates from Novartis in July 2015.

"We are very excited to be joining AIM, allowing the Company to take the next logical step towards realizing our vision of becoming a leading speciality biopharma company," said Chief Executive Denise Scots-Knight. "Our strategy is to build, over time, a diverse portfolio, and having publically-traded shares, will provide additional flexibility to secure the next product candidates."

RBC Capital Markets is acting as global coordinator, private placement agent and broker, and Cantor Fitzgerald Europe is acting as nominated adviser, private placement agent and broker. Evercore is financial adviser to the company.

Write to Jana Simmons at [e-mail]

(END) Dow Jones Newswires

June 06, 2016 04:56 ET (08:56 GMT)

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