New and returning shareholders buy £28.5mm in Vernalis stock

Vernalis PLC (out-licenses candidates spanning multiple therapeutic areas at the later stages of development) netted £28.5mm ($44.6mm) through the placement of 39.4mm new ordinary shares at £0.76, a 7% discount, to new and returning investors. For every 29 shares they own, stockholders could purchase 19 new shares. The directors of the company bought £95.4k in stock, and existing backer Invesco Asset Management upped its stake to 46%. Piper Jaffray was the placement agent. Vernalis will use £21mm of the proceeds to re-acquire 100% of the royalties on frovatriptan from Paul Capital Healthcare, which bought the future payments on the migraine drug in 2008. By terminating its deal with Paul Capital, Vernalis has eliminated its debt and now has enough cash to last beyond 2012.