The London-listed firm will acquire Canada’s Awakn for £5 million to develop better treatments for addiction and mental health disorders.
London-listed Graft Polymer, which develops drug delivery systems, is to acquire Awakn Life Sciences, a clinical-stage biotechnology company developing therapeutics for substance use and mental health disorders, for C$8.9 million (£5 million).
“Awakn’s advanced research and clinical programs offer the potential to develop more effective and accessible treatments for these critical areas of need,” said Dennis Purcell, chairman of Graft Polymer. “We believe this strategic move will not only drive value for our shareholders but also contribute meaningfully to improving the lives of millions impacted by these conditions.”
Under the terms of the deal, each Awakn shareholder will receive 46.67 ordinary shares in Graft for each share held in Awakn. The acquisition price of C$8.9 million results in the Awakn being valued at C$0.20 per share. This is a 110.54% premium to the closing share price of Awakn’s shares on the Canadian Securities Exchange on 13 December and a 88.69% premium to a 90-day volume weighted average price.
George Scorsis, chairman of Awakn, explained that the firm had a “significant portion” of its operations in the UK and following the completion of the deal would have “access to the UK’s deep pool of liquidity as well as the international investor base positioned in London”.
The acquisition has been unanimously approved by the respective boards of Awakn and Graft.
The deal is expected to complete by mid-June.
