Valneva SE said on Thursday that MVM Life Science Partners LLP (`MVM`), a specialist healthcare investor based in London and Boston with more than $700 million under management, has acquired a 7.5% shareholding in the company, and
MVM will be entitled to an investor director representative, to be appointed to Valneva`s Supervisory Board by the next annual shareholders meeting.
Thomas Lingelbach, President and CEO, and Franck Grimaud, Deputy CEO of Valneva, said that MVM`s investment in Valneva is a strong endorsement of Valneva’s growth strategy and an important step in its initiative to broaden our shareholder base.
Lingelbach said: “We are delighted to welcome such a renowned healthcare investor on board, who can help us in continuing to develop Valneva by bringing expertise, networks and financial resources.”
Dr. Bali Muralidhar, a partner at MVM, said: “Valneva is uniquely positioned in having deep domain expertise in vaccine discovery, development and commercialisation within one independent company. We look forward to supporting the growth of the current commercial vaccine franchise both organically and inorganically. The company has a rich pipeline of vaccine products in development and we are particularly excited to be part of a company that has the opportunity to bring a novel Lyme vaccine to unserved patients in the US and EU.”
MVM will own 7.5% of Valneva`s ordinary shares
It was furhter said in the Thursday press release by Valneva that the investment by MVM is a combination of private placement and share purchase, and that the transaction is expected to close on December 14, 2016. The issuance of 2,884,615 new primary shares will result in proceeds of €7.5 million for Valneva and will bring the company`s total number of ordinary shares to 77,582,714. Together with the purchase of a further tranche of shares from undisclosed shareholders of Valneva, MVM will own 7.5% of Valneva`s ordinary shares at the close of the combined transaction.
Groupe Grimaud and BPI France’s shares stays same
Valneva`s current key shareholders, Groupe Grimaud and BPI France, did not participate in the transaction through any sale or purchase of shares and will still own 15.6% and 9.6%. Both shareholders will vote for the appointment of Dr. Bali Muralidhar as a new member of Valneva`s supervisory board in the next Annual General Shareholder meeting, expected to take place in June 2017, Valneva said. In the meantime, Dr. Muralidhar will join the supervisory board as an observer.
Valneva said it intends to use the net proceeds of the private placement to fund the development of its clinical stage vaccine products and to accelerate worldwide commercialization activities.