• SKIP TO CONTENT
  • SKIP NAVIGATION
  • Patient Resources
    • COVID-19 Patient Resource Center
    • Clinical Trials
    • Search Clinical Trials
    • Patient Notification System
    • What is Clinical Research?
    • Volunteering for a Clinical Trial
    • Understanding Informed Consent
    • Useful Resources
    • FDA Approved Drugs
  • Professional Resources
    • Research Center Profiles
    • Clinical Trial Listings
    • Market Research
    • FDA Approved Drugs
    • Training Guides
    • Books
    • eLearning
    • Events
    • Newsletters
    • JobWatch
    • White Papers
    • SOPs
    • eCFR and Guidances
  • White Papers
  • Trial Listings
  • Advertise
  • COVID-19
  • iConnect
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Home » Encorium Group Completes Private Placement, Won’t Sell Subsidiary

Encorium Group Completes Private Placement, Won’t Sell Subsidiary

October 27, 2009
CenterWatch Staff

Berwyn, Pa.-based contract research organization (CRO) Encorium Group has terminated another deal to sell off part of the company. 

Instead, Encorium has completed a private placement of 3.94 million shares of its common stock with a private investor for an aggregate purchase price of $1.575 million, or $0.40 per share, after ending its previously announced negotiations to sell its subsidiary Encorium Oy to a U.S.-based CRO. 

Encorium now plans to move ahead as an independent company after receiving the financing and recently being awarded $8.7 million of new business contract wins with its selection by a major pharmaceutical company for participation in a swine flu vaccine program. 

"We are very pleased that we were able to close this financing to shore up our balance sheet and provide the company with additional working capital. Our experience and capabilities in the vaccine field, coupled with the recent new awards in this area, demonstrate the long-term potential we have to grow into a leading vaccine franchise with expertise in preclinical support, regulatory consultancy and strategic trial planning,” said Dr. Kai Lindevall, executive chairman of Encorium. “We believe these developments will position us to move ahead independently and are in the best interest of all stockholders." 

Of the 35 million authorized capital stock of the company, 26,325,383 shares of common stock will be issued and outstanding immediately following the closing. 

Prior to the transaction, Encorium entered into warrant exchange agreements with two investors to whom the company issued an aggregate of 1.864 million shares of common stock and warrants to purchase an aggregate of 874,126 shares of common stock, exercisable for a period of five years, at an exercise price of $0.40 per share. Warrants were issued in exchange for warrants dated as of May 9, 2007, held by the investors to purchase an aggregate of 874,126 shares of common stock of the company. 

In July, Encorium completed the sale of its U.S. business to Pierrel Research USA, a subsidiary of Italian CRO Pierrel SpA, for $2.7 million. The final purchase price comprised $80,000 in cash plus the assumption of $2.6 million in liabilities. With the closing, Encorium announced that CEO David Ginsberg had joined Pierrel Research USA as its CEO, and chief operating officer Linda Nardone, Ph.D., left the company. 

Upcoming Events

  • 24May

    Powering an Effective Oversight Strategy with Clinical and Operational Insights

  • 25May

    2022 WCG Avoca Quality & Innovation Summit: Own the Future

  • 28Jun

    Effective Root Cause Analysis and CAPA Investigations for the Life Sciences

  • 16Oct

    WCG MAGI's Clinical Research Hybrid Conference - 2022 West

Featured Products

  • Spreadsheet Validation: Tools and Techniques to Make Data in Excel Compliant

    Spreadsheet Validation: Tools and Techniques to Make Data in Excel Compliant

  • Surviving an FDA GCP Inspection

    Surviving an FDA GCP Inspection: Resources for Investigators, Sponsors, CROs and IRBs

Featured Stories

  • Protocol-360x240.png

    Avoid Deviations by Making Protocol Review a Team Effort

  • SelectionProcess-360x240.png

    Give Us a Voice: Sites Clamor for a Say on Vendor Selection

  • Convince-360x240.png

    Use Data and Details to Convince Site Leadership to Add Staff

  • AsktheExpertsBadge-360x240.png

    Ask the Experts: Listing Trial Staff and Others on the Statement of Investigator

Standard Operating Procedures for Risk-Based Monitoring of Clinical Trials

The information you need to adapt your monitoring plan to changing times.

Learn More Here
  • About Us
  • Contact Us
  • Privacy Policy
  • Do Not Sell My Personal Information

Footer Logo

300 N. Washington St., Suite 200, Falls Church, VA 22046, USA

Phone 617.948.5100 – Toll free 866.219.3440

Copyright © 2022. All Rights Reserved. Design, CMS, Hosting & Web Development :: ePublishing