Deacons represented Amrad Corporation Limited in the $24 million de-merger of the company’s anti-infectives business, Avexa Limited which listed on the ASX on 23 September.
Amrad is an Australian drug discovery and biotechnology development company. Its in-house R&D team is developing therapies that could become early market entrants and new drug classes for the treatment of major diseases including HIV/AIDS, Hepatitis B and antibiotic resistant bacterial infections.
The law firm said that under a scheme of arrangement the Amrad shareholders approved a capital reduction and de-merger Avexa Limited.
Amrad invested $12 million cash to retain a 19.9 per cent shareholding in Avexa, which it has agreed to voluntarily escrow for two years. The remainder of the shares in Avexa are owned on a pro-rata basis by Amrad shareholders. Avexa’s initial listing price was $0.30 per share.
Deacons’ Melbourne corporate and commercial partner Rod Lyle and senior associate Stephen Blank led Deacons’ team. They worked closely with Amrad’s CEO Dr Pete Smith, Director of Finance and Administration Alan Boyd and general counsel Robyn Fry, as well as KPMG.
Dr Hugh Niall has recently been appointed as chairman of Avexa and Dr Julian Chick will take over as Avexa’s CEO.
Deacons said the market views the de-merger very positively as it allows both Amrad and Avexa to concentrate on their areas of expertise.
Deacons corporate and commercial partner Bernard O’Shea is continuing to assist both Amrad and Avexa with the post de-merger transition process and their respective R&D initiatives.