SkinBioTherapeutics PLC on Friday said it expects to complete an acquisition early in 2024, missing its year-end target.
The Newcastle, England-based life science company focused on skin health said its acquisition of a UK-based dermatological product supplier, its lead M&A project, is expected to be completed in early 2024, ‘despite management’s best efforts’.
SkinBioTherapeutics said it has largely completed due diligence on the acquisition, with a sale and purchase agreement being worked on. However, legal work has taken longer than anticipated, with disruption worsened due to the holiday period.
It noted that the acquisition, when completed, will provide a ready revenue stream from product sales.
SkinBioTherapeutics also noted that it is in advanced due diligence on another acquisition target, another dermatological product manufacturer. It said the purchase may be completed in early 2024.
The company has various options available to fund transactions. It will look to use a combination of cash, earn-outs, and stock issuance to pay for acquisitions, and it has agreed a convertible loan note in the short term for any cash element of a deal.
SkinBioTherapeutics shares closed unchanged at €15.25 each on Friday afternoon in London. The stock has nearly halved in the past two months, but is down only 1.6% in the past 12 months.
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