4basebio PLC has announced a significant equity issuance and secondary sale, with Elevage Medical Technologies and Prudential Assurance Company Limited's investment manager, M&G, agreeing to a combined investment of £40.0 million. The net proceeds from the issuance will be used to support and expand the company's operations, including business development, infrastructure enhancement, innovation in new DNA modalities, geographical expansion, and working capital.

The issuance of ordinary shares at an issue price of 1,500 pence per Ordinary Share will represent approximately 20.8% of the existing issued ordinary share capital of the Company. Additionally, Elevage and M&G have agreed to purchase 1,959,424 ordinary shares from entities belonging to the Deutsche Balaton Group and certain management and directors of the Company, at a purchase price equal to the issue price for an aggregate purchase price of £29.4 million.

As a result of the issuance and the secondary sale, Elevage and M&G will together hold 29.9% of the Company's issued ordinary shares. John Marotta, Executive in Residence of Patient Square Capital, is intended to join the Company's Board of Directors as Executive Chairman, and Elevage will have the right to appoint a proportional number of directors to the Company's board as represents the combined holdings of Elevage and M&G in the Company's share capital.

The issuance is interconditional with the secondary sale and is conditional upon necessary clearance under the National Security and Investment Act 2021 and merger control approval. The new shares, when issued, will be fully paid and will rank pari passu in all respects with the existing ordinary shares.

RBC Capital Markets is acting as the sole Placement Agent to 4basebio. The directors of the Company, with the exception of certain directors and a significant shareholder involved in the transaction, consider the terms of the transaction to be fair and reasonable.

Dr. Heikki Lanckriet, CEO and CSO of 4basebio, expressed his satisfaction with the capital raise, stating that it will further drive the momentum of the Company. John Marotta of Patient Square Capital expressed strong conviction in synthetic DNA's potential to advance novel healthcare treatments and its place in the cell and gene therapy market. M&G Portfolio Manager, Jeremy Punnett, highlighted the importance of providing expertise and patient capital to innovative deep tech firms in the UK.

The completion of the issuance and secondary sale is expected to become unconditional following receipt of regulatory approvals later in 2024.