CIP Merchant Capital Ltd Investment in Circassia Pharmaceuticals plc (4967Z)

TIDMCIP TIDMCIR

RNS Number : 4967Z

CIP Merchant Capital Ltd

10 January 2020

10 January 2020

CIP MERCHANT CAPITAL LIMITED

("CIP Merchant Capital", "CIP" or the "Company")

Investment in Circassia Pharmaceuticals plc

CIP Merchant Capital is pleased to announce its investment in Circassia Pharmaceuticals plc ("Circassia"), a specialty biopharmaceutical company focused on allergy and respiratory diseases quoted on AIM. The Company has acquired, in aggregate, 12,800,000 ordinary shares in Circassia, representing approximately 3.4% of Circassia issued share capital, for a total consideration of approximately GBP2.8 million.

In the year ended 31 December 2018, Circassia had revenue of GBP48.3 million, a gross profit of GBP39.4 million and a net loss attributable to its shareholders of GBP25.9 million from underlying operations and a total loss of GBP117.1 million, which includes losses of GBP20.7 million from non-underlying operations (non-recurring/irregular expenditure) and loss of GBP70.5 million from discontinued operations. In the six months ended 30 June 2019, Circassia reported revenue of GBP27.9 million, a gross profit of GBP20.3 million and a total loss of GBP19.0 million, and, as at 30 June 2019, had net assets of GBP103.2 million.

The Board of CIP believes Circassia has a clear route to profitability, having recently announced that the revenues for the 2019 year are expected to fall in the mid-range of its previously issued guidance of GBP60-GBP65 million. In April 2019, Circassia announced the US Food and Drug Administration approval of Duaklir, a drug for maintenance treatment of chronic obstructive pulmonary disease, which was later launched in October 2019. Circassia has also recently made what the Board believes to be positive changes to its leadership team, hiring executives with a proven track record.

Circassia now constitutes the Company's seventh portfolio company.

For further information, please contact:

 
Merchant Capital Manager Limited (Investment Manager) 
 Marco Fumagalli                                        [phone] 
 Carlo Sgarbi                                            60 
Strand Hanson Limited (Financial & Nominated Adviser 
 and Broker) 
 Richard Tulloch / James Bellman                        [phone] 
 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.

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January 10, 2020 10:18 ET (15:18 GMT)