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.
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.”
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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.