Fastnet Equity shares rise after company announces £29.6m reverse takeover deal with Amryt Pharmaceuticals

William Turvill
Follow William
Pfizer's Second Quarter Net Income Shows Large Gain, More Than Doubles
If the deal is agreed to, the new company would be called Amryt Pharma (Source: Getty)

The share price of Fastnet Equity, formerly known as Fastnet Oil and Gas, shot up this morning after it announced a £29.6m reverse takeover deal with Amryt Pharmaceuticals.

If the reverse takeover is agreed, the new Aim-listed company would be called Amryt Pharma.

Amryt, which was founded in August 2015, recently agreed deals to acquire Birken and SomPharmaceuticals.

Read more: The first mega-deal of 2016 due to be announced

The £29.6m will be satisfied by the issuance of Fastnet shares. The company is also proposing to raise £10m through a placing of 41.7m new shares at a cost of 24p. It said this price is equivalent to 3p per share before the capital reorganisation.

Joe Wiley, the proposed chief executive of Amryt Pharma, said: “Today’s announcement is an important step towards realising the company’s vision of building a specialty pharmaceutical company focused on best in class treatments for orphan diseases.

“We are focused on building a portfolio of differentiated medicines, in therapeutic areas where there is large unmet medical need and which offer significant commercial potential.”

Read more: Hikma's share price plunges on lower offer

He said the £10m of new funds would be used to accelerate the development of Episalvan, a treatment that recently won European approval.

Following the announcement, Fastnet Equity's share price rose as high as 3.75p this morning, up more than 30 per cent.

Related articles