US - AquaBounty has entered into an Equity Subscription Agreement with Intrexon Corporation to issue 19,040,366 new common shares, raising $10 million (approximately £6 million) before expenses.
The price of the new common shares is 31.5 pence ($0.5252 based on a conversion rate of £1:$1.6673) per share, which represents the closing price of the company's shares on AIM on 4 March 2014.
Following the Subscription, Intrexon would hold a total of 86,386,624 common shares in the company representing 59.85 per cent of the issued share capital. The total issued share capital of the company following this issue would be 144,345,837 common shares.
The Subscription is subject, inter alia, to the approval of Shareholders at a General Meeting, which will be held on 20 March 2014 at 10:00 a.m.
The company is also seeking shareholder approval for its Second Amended and Restated Certificate of Incorporation, which includes the implementation of a 1-for-10 reverse stock split, along with certain changes to its corporate governance procedures and voting thresholds, in preparation for the registration of the company’s common shares on NASDAQ.
Richard Clothier, Chairman of AquaBounty, said: “The Board is delighted to continue to receive the backing of its majority shareholder, Intrexon. It is an affirmation of AquaBounty’s proposition and our belief that when the FDA approval is granted, the company will be able to fulfill its vision of using its technology to enable efficient, large scale aquaculture capable of environmentally sustainable production of high quality seafood. The Board continues to believe that FDA approval for the sale and consumption of AquAdvantage® Salmon will be forthcoming.”
TheFishSite News Desk