Bio company Licht into shape following investment
Shares in Sareum rose by almost a half from a sub one penny base following news that a founding director of Mercury Asset Management had taken a ten per cent stake in the company.Sareum issued over 47 million shares at a price of 0.85 pence per share to Leonard Licht and his wife, representing an invesment of £400k. Licht is chairman of Hg Capital and a former founding director and vice chairman of Mercury.
Shares in Sareum rose 46 per cent to a shade over a penny.
The company said the funds raised from the issue would be used to provide extra working capital and for the purchase of specific capital items.
Sareum, which provides structure based drug discovery services to the pharma industry and develops early stage drug candidates for licensing, was formed by executives made redundant following the closure of Millennium Pharmaceuticals’ Cambridge facility.
Sareum's CEO, Dr Tim Mitchell said: "This significant investment by an experienced investor as Mr Licht is a positive endorsement of the long term potential value of Sareum's drug discovery business."
Licht added: "I believe Sareum to be well positioned to continue their excellent progress and ultimately occupy an important place in the pharmaceutical and biotechnology sector."