OptiBiotix to float SkinBioTherapeutics subsidiary

Life sciences business developing compounds to tackle obesity, high cholesterol, diabetes and skin care, OptiBiotix Health, announced on Tuesday that its majority owned subsidiary SkinBioTherapeutics intended to seek admission to AIM with an associated institutional and private client investment manager fundraising.

The AIM-traded company confirmed a Schedule One announcement in relation to the proposed admission was issued by the London Stock Exchange earlier in the day.

On 5 July 2016, OptiBiotix announced its strategy to form separate divisions, each containing its own technology platform, intellectual property portfolio and specialised teams, which could in due course become separate legal entities with the potential for a separate public listing.

On 5 October, Martin Hunt was appointed as non-executive chairman of SkinBioTherapeutics, and on 20 October, OptiBiotix announced it had invested a further £0.4m into SkinBioTherapeutics via a convertible loan agreement to build the team, IP, and research and development programmes to progress towards an initial public offering.

OptiBiotix's convertible loan would be converted into ordinary shares in SkinBioTherapeutics on admission, its board confirmed.

The company’'s strategy was based on its belief that the diversity of intellectual property and commercial relationships across its four divisions reduced shareholder risk whilst offering multiple opportunities for value enhancement.

OptiBiotix said the planned admission of SkinBioTherapeutics would bring in non dilutive funding and create the opportunity to drive the development and commercialisation of its SkinBiotix technology platform to address large scale global markets in skin health - including cosmetic skin care, healthcare acquired infections and eczema.

“The rapid development and growing awareness in the microbiome have been matched by OptiBiotix's progress in a number of diverse areas of key scientific and commercial interest,” said CEO Stephen O'Hara.

“OptiBiotix's skin division has built its own IP, team, and development programmes to a point where the board believe the scale of the opportunities offered by its SkinBiotix technology in the biotherapeutic space may be best realised by separate listing.

“As a majority shareholder in SkinBioTherapeutics, OptiBiotix's board believe this provides the necessary resources to grow SkinBioTherapeutics and create the potential for substantial future value enhancement.”