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Australia’s Immuron (NASDAQ:IMRN) said it is acquiring 17.5% stake in U.K. based Ateria Health by investing ~£1.5M.
Immuron has been offered one board seat at Ateria after the transaction is complete.
Immuron has an option to invest another £1.47M which expires on July 31, 2023, and has been offered a second board seat at Ateria upon exercise of this option.
Ateria has developed and launched Juvia to treat irritable bowel syndrome (IBS).
The strategic investment advances Immuron’s aim to enter the broader IBS market with leading products and strengthen the distribution of Immuron’s Travelan products through B2C online platforms, the company said in an Oct. 13 press release.
Travelan is used to reduce the risk of travelers’ diarrhea.
The company noted that the investment aligns with its growth strategy and complements its existing travel diarrhea products.
The two companies intend to explore possible arrangements for introducing Juvia in the Australian market, expand the product in the U.S. and Canada; and possible expansion of Travelan product sales in the U.K. and European markets.
Immuron said the the £1.48M upfront will be funded from existing cash reserves.
The completion of the transaction is subject to Immuron’s confirmatory due diligence and Ateria shareholder meeting to be held around Oct. 28.
