SkinBioTherapeutics shares jump on acquisition of topical cream maker

11th Oct 2024 08:41

(Sharecast News) - AIM-listed life sciences company SkinBioTherapeutics has announced the acquisition of Yorkshire-based health, hygiene and personal care products group Bio-Tech Solutions for £1.25m.

SkinBioTherapeutics said the deal brings the capabilities of manufacturing and packaging of health, hygiene and personal care products, as well as a future development platform for advanced topical creams.

The deal is being funded by a loan of £950,000 from a long-term shareholder along with a subscription for 2.35m shares at 10.64p (raising £250,000), along with the group's cash reserves.

After a fundraising in August, SkinBioTherapeutics had a cash position of £1.9m by the end of September, so still has "sufficient cash runway to support its operations through to Summer 2026".

"This is the second acquisition we have made as part of our buy and build strategy to generate immediate and longer-term benefits to the SkinBioTherapeutics Group," said chief executive Stuart Ashman.

"This is another building block to the solid scientific and financial foundations of the group and, with the successful completion of the Croda clinical studies, we are moving rapidly towards group profitability."

The stock was up nearly 10% at 12.34p by 1037 BST.