Vela Technologies PLC and Cizzle Biotechnology Holdings PLC on Thursday said the go-ahead for a partner to take on a New York listing will allow them to cash in options to sell their interests in a new drug.
Vela Technologies shares were up 61% at 0.033 pence in London on Thursday. Cizzle shares were up 3.2% at 1.96p. Vela shares now are up 10% over the past 12 months, while Cizzle shares are up 20%.
Both companies have put options to sell their interests in different applications of AZD1656 to Conduit Pharmaceuticals Ltd. Exercising the options was dependent on Conduit’s plan to merge with Murphy Canyon Acquisition Corp and take on its Nasdaq listing. This was approved by Murphy Canyon shareholders on Wednesday, so the merged business - to be called Conduit Pharmaceuticals Inc - will start trading in New York from Friday.
Vela, a Bingley, England-based early stage-focus technology investor, said it intends to exercise a put option agreement to sell its economic interest in the commercialisation of the Covid-19 application of AZD1656 for £4.0 million. The option was agreed back in April. Once any closing conditions are waived or satisfied, Vela will exercise the option, it said.
Cizzle Biotechnology, a London-based diagnostics developer said it also now can exercise a put option to sell its own 5% economic interest and royalty sharing agreement in AZD1656 to treat inflammatory pulmonary and cardiovascular disease.
If exercised, Cizzle’s option would be satisfied through the issue of shares in Conduit worth £3.3 million.
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