Integumen said discussions and fundraising for Cellulac acquisition still happening

Integumen updated the market on its proposed acquisition of Cellulac on Friday, reporting that discussions with Cellulac and due diligence were ongoing, as was the process of raising funds for the proposed transaction, as well as Integumen’s ongoing requirements.

The AIM-traded firm had announced the proposed acquisition on 16 April.

At the time, it said the enlarged group would focus on biodegradable plastic ingredients, cosmetics and human grade food supplements, and would have a portfolio of existing products, with high-margins in the oral care, medical and cosmetic industries.

“Existing Integumen cosmetic packaging, oral care consumer products and third party products can in time be replaced with biodegradable plastic materials,” the board said in April.

“These drop-in replacements will be focused on existing and near to market products.

“Demand for these products is established and an offtake agreement worth up to $36m over five years is already in place.”

Integumen proposed to acquire the entire issued and to-be-issued share capital of Cellulac by a “number” of new ordinary shares in Integumen, representing about 84% of the enlarged issued share capital.

In addition, it said in April that it intended to raise up to £7.5m by way of an equity placing or debt funding.

“The company is required to publish its accounts for the year ended 31 December by 30 June under Rule 19 of the AIM Rules for Companies,” Integumen’s board said on Friday.

“However, the board anticipates that completion of the audit, and publication of the 2017 accounts, will now take place following the announcement of the fundraising or the transaction.”