Silence Therapeutics plc, LON:SLN a leader in the discovery, delivery, and development of novel RNA therapeutics for the treatment of serious diseases with unmet medical need, announced this morning that it has sold part of its holding of common shares in Arrowhead Pharmaceuticals Inc. (NASDAQ: ARWR).
As per an RNS dated 13(th) January 2017, Silence had purchased 6,831,359 common shares of Arrowhead for a total consideration of $11.3 million (GBP9.2 million at an exchange rate of GBP1=$1.234), then representing 9.21% of Arrowhead. At the Company’s last balance sheet date (30 June 2017) this shareholding was marked-to-market and valued at GBP8.55 million as an available-for-sale financial asset.
The Company has sold 2,036,046 shares on the open market for $7.5 million (GBP5.6 million). The average purchase price per common share was $1.65 and the average selling price of the 2,036,046 common shares recently sold was $3.68. The profit recorded is therefore $4.1 million, or GBP2.9 million. The Company will use the proceeds from the sale of the common shares to fund the Company’s working capital requirements.
Silence has determined it may be advantageous to liquidate portions or all of its holdings of Arrowhead common shares from time to time in an orderly manner consistent with prudent management of its investment.
Ali Mortazavi, Chief Executive Officer of Silence Therapeutics, commented: “Our balance sheet has been strengthened by the addition of GBP5.6 million in cash received from the partial sale of this stake in Arrowhead. As a biotech company focussed on both our platform and our developing pipeline, we believe that this cash receipt will enable us to maintain our focus as we advance products towards the Clinic.
The Company will invest the funds in low risk cash or cash equivalent investments to safeguard the principal, using financial institutions with a credit rating equivalent to, or above, the main UK clearing banks.”
