SkyePharma Placing To Fund Jago Acquisition

UK Company SkyePharma has entered into a placing and underwriting agreement with SBC Warburg to raise an estimated L135.4 million ($206.3 million) net of cash expenses, to finance the acquisition of Jago Holding AG of Switzerland announced last month - at a cost of L104.8 million (Marketletter March 25) - and the enlarged group's working capital requirements, principally for its drug development program.

Meantime, an application has been made to the London Stock Exchange for the whole of the ordinary share capital and "B" warrants of SkyePharma, issued and to be issued, to be admitted to the Official List. It is expected that such a listing will become effective and that unconditional dealings can commence on May 3.