C4XD, Manchester drug firm, to delist from AIM

C4X Discovery CEO Clive Dix

Manchester-based drug discovery company C4X Discovery Holdings plc (C4XD) has announced the proposed cancellation of its ordinary shares on AIM and re-registration as a private limited company.

C4X Discovery said it believes the current public market valuation of the firm’s shares does not reflect the underlying potential of the business or its achievements to date.

The company believes that as a private company it can potentially access “a larger quantum of future funding” required to accelerate its strategy.

The firm is seeking shareholder approval for the cancellation, re-registration and adoption of new articles at a general meeting on April 15, 2024.

C4X Discovery CEO Clive Dix said: “We have not taken this decision lightly, however, following an extensive review and deliberation to ascertain the most effective way to maximise shareholder value in the longer term and increase the potential for the long-term success of the company, the board has unanimously concluded that it is in the best interests of the company and our shareholders to delist from AIM and re-register as a private limited company.

“Despite delivering on our strategy including three major deals with leading pharmaceutical companies demonstrating our scientific expertise and deal making capabilities, the recent downturn in the financial markets has adversely impacted our share price, and with it, our future ability to raise funds in the public markets.

“The board believes the current public market valuation does not reflect the underlying potential of our business or our achievements to date and that this is unlikely to change in the short-to-medium term.

“We believe that we can potentially access a larger quantum of future funding required to accelerate our strategy as a private company and therefore we believe that a cancellation of the company’s admission on AIM is in the best interest for shareholders and for the future of our business as a whole.”

C4X Discovery said: “If the cancellation resolution is passed at the general meeting, it is anticipated that the cancellation will become effective at 7.00 a.m. on 26 April 2024.

“The cancellation resolution is conditional, pursuant to Rule 41 of the AIM Rules, upon the approval of shareholders holding not less than 75 per cent. of the votes cast by shareholders (whether present in person or by proxy) at the general meeting …”

C4X Discovery said it has received irrevocable undertakings from shareholders Richard Griffiths, Polar Capital LLP and the directors, and a non-binding letter of intent from Lombard Odier, representing 57% of the company’s issued share capital, to vote in favour of the resolutions.

C4X Discovery also announced its half-year results for the six months ended January 31, 2024, and receipt of $11 million preclinical milestone payment from AstraZeneca under the exclusive worldwide licence agreement worth up to $400 million, for the firm’s NRF2 Activator programme.

“Indivior acquired C4XD’s oral Orexin-1 receptor antagonist, C4X_3256 (INDV-2000), for substance use disorder under an asset purchase agreement for £15.95 million,” said C4XD.

“In April 2021, C4XD signed a world-wide exclusive agreement with Sanofi, for an oral pre-clinical IL-17A inhibitor programme worth up to €414 million with first milestone payment of €3 million received in July 2022.”

First-half revenue was £24.6 million and total profit after tax was £17.8 million.