Oxford BioMedica to float on London SE

Oxford BioMedica of the UK says it plans to raise, net of expenses,around L27 million ($39.6 million) through the issue of 54.5 million ordinary shares, priced at L0.55 each, through a placing which has been underwritten by NM Rothschild and Beeson Gregory. It hopes to raise a further L10 million through an open offer of 19.2 million shares, also priced at L0.55 each and, on completion of the offerings, the group will officially move from the Alternative Investment Market to the London Stock Exchange.

BioMedica, which specializes in gene therapy for cancer, said it planned to use the proceeds to increase "the clinical trial program, continue to build alliances with major pharmaceutical companies, further strengthen its intellectual property position and establish a US operation." L9 million has been earmarked for the latter.

The group's chief executive, Alan Kingsman, claimed that a move to the main London market "has been a long-held ambition for us and we are pleased to have achieved this goal." He stated that the group has been supported in this "by a range of quality UK and European institutions during a particularly difficult time for the biotech sector," adding that "we have had a very positive endorsement from investors, reflecting BioMedica's growing standing in the biotech sector and its long-term potential."